Tokemak Autopilot: Simplify LPs and Maximize Yield with Autopools

Before we begin, this is not a recommendation or endorsement to purchase any mentioned token(s).

This week, we're delving into a new DeFi innovation called Autopools, powered by Tokemak's Autopilot. These pools are designed to simplify liquidity provision (LP) by autonomously rebalancing your positions across multiple decentralized exchanges (DEXs) and assets.

Historically, providing liquidity in DeFi has been a complex and time-consuming task. Variables like yield fluctuations, trading fees, gas costs, and differing Automated Market Maker (AMM) models make optimizing your liquidity positions challenging. Tokemak's Autopilot addresses these issues by introducing Autopools, which eliminate the manual effort of rebalancing and compounding rewards. Users can simply deposit their assets, and Autopilot handles the rest—rebalancing and optimizing positions for enhanced yield across selected DEXs.

Autopools allow users to deposit assets into a pool, represented by yield-bearing tokens such as autoETH and autoLRT. From there, Autopilot continuously monitors the underlying pools, automatically rebalancing and compounding rewards back into the pool. This streamlines liquidity provision to a single deposit, removing the need for constant research or interaction with multiple protocols. Additionally, the receipt tokens (LATs) users receive are composable, meaning they can be utilized across other DeFi platforms for additional yield or as collateral.

Much like how DEX aggregators have simplified trading by finding the best prices across various exchanges, Autopilot does the same for liquidity providers by optimizing returns across multiple DEXs. By removing the complexities of liquidity provision, Autopools offer an easy, gas-efficient way for both DeFi newcomers and experienced users to earn yield effectively. With just a few clicks, Autopilot ensures your liquidity is optimized—making LPs as straightforward as holding a token.

Today, I'll walk you through how to get started earning with one of Tokemak's three newly launched Autopools!

A New Way to LP: How to Deposit into Tokemak Autopools

Before we begin, please be aware of the following risks:

• Smart contract vulnerabilities in related applications like Tokemak, Curve, and Balancer

• Front-end spoofing attacks on any application interface

• Economic design exploits

• Collusion among signers on any multisig wallet

• Systemic risks across the DeFi ecosystem

Here's how I get started:

1. Navigate to the Tokemak Autopilot app and connect your Ethereum Mainnet wallet.

2. Select an Autopool based on the ETH derivatives involved (e.g., LSTs or LRTs), the underlying Automated Market Makers (AMMs) for yield sourcing, and your preferred yield type. For this example, I'll choose autoLRT and click "VIEW" to target a 31.87% yield.

3. Enter the amount of ETH you wish to deposit, click "DEPOSIT," and follow the prompts in your wallet to confirm the transaction.

That’s it! I can track my position here on the PORTFOLIO tab or withdraw from the Autopool anytime in the future.

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