With DeFi running in full swing and filled along tens and billions of dollars in liquidity, it can be fairly difficult to optimize your investments to their fullest there. Prices and markets move in the blink of an eye, as just even a single untimely trade can be costly. Transaction fees are a killer, and you have to manage all this like you're a full-time Wall Street trader. So, why not try find ways to make your life easier? And for that, we'll get more into our AutoFarm review.
Yields across decentralized finances are no doubt very profitable, with double-digit percentage returns and higher. However, it requires a lot of work to monitor each asset, as well as the inefficiencies in high transactional costs, and quickly losing track of the market as a whole.
That's why yield farming aggregators like AutoFarm exist, using the lightning speeds of smart contracts to automate all of that for you to maximize gains. Interested? Then read along our AutoFarm review to know more…
What Is AutoFarm?
AutoFarm is a decentralized protocol built and powered natively on the Binance Smart Chain (BSC), which offers both a yield farming and decentralized exchange (DEX) aggregator for its users. As a multichain network, they're also running on the HuobiEco (HECO) blockchain as well.
AutoFarm's goal is to simply help its users better manage their gains on DeFi. As of writing this AutoFarm review, their entire network now has more than $1.04-billion in the total value of liquidity locked.
Outside of its main yield farming and DEX aggregation tools – more of which we'll discuss below – they've also just very recently acquired ƒarmƒol.io, which is also built on the Binance Smart Chain. ƒarmƒol.io is an intelligent portfolio manager for users to easily track their assets and holdings on BSC. There are two main components to AutoFarm that we'll look at – their yield farming optimization tool called AutoFarm Vaults and its DEX aggregator called AutoSwap.
How Does AutoFarm's Yield Farming Optimizer Work?
With AutoFarm Vaults, it works quite simply by searching across DeFi protocols on both the BSC and HECO blockchains, respectively, and identifying which protocols offer the best yields, either through liquidity pools, AMMs, or yield farms.
Once these have been found, AutoFarm offers them to you as a Vault. Usually, wanting to continually maximize your grains from yield farms and liquidity pools would require the old-fashioned way of doing it manually.
This means having to spend time rerouting those newly earned yields and either compounding or reinvesting them back into the pool to earn even higher returns over time. Doing so manually is inefficient, as every single transaction can incur a network-wide gas fee, or it might be too slow to a point where you might've missed the right price and timing to enter the market. Or, maybe you might be losing out on the best yields at other protocols that you haven't looked at before.
AutoFarm solves all of this by aggregating all the available pools and farms it can find into a single platform. You can then pool or stake your tokens into these pools, which AutoFarm can apply automated compounding and reinvesting features to maximize your returns thanks to the use of smart contracts.
This auto compounding feature works at specified empirical optimal levels to try and get you the best prices possible, as well as pooling together gas costs to save you on fees.
What Else Could AutoFarm Do?
Aside from those aforementioned benefits in our AutoFarm review, AutoFarm's smart contracts are able to be programmed with unique strategies to optimize yields even better, powered by a proprietary dynamic harvesting optimizer to net you the most earnings possible.
In short, you can automatically let your assets and investments grow in the background, as AutoFarm Vaults actively works your crypto tokens across the DeFi space to make your yields get ever richer.
As for the other service they offer, we have AutoSwap. This is a decentralized exchange (DEX) aggregator, which functions as a way for you to get the most competitive prices for your tokens swaps. Essentially, when you make an exchange from one token to another, AutoSwap will split that trade across several DEXes at the same time. In effect, this helps to give you the best prices for that swap and with the lowest slippage possible.
How Can You Use AutoFarm?
For our AutoFarm review, we've found that their protocol as a whole is quite simple to use and navigate. Using it is very straightforward, too, as there are only two distinct services that you can use; AutoFarm Vaults and AutoSwap. Here are some of the ways in which you can use AutoFarm…
1. AutoFarm Vaults
The one big upside to using AutoFarm is that compared to some other DeFi yield farming tools, AutoFarm has a lot more options – or Vaults – to pick from. On the Binance Smart Chain, there are at least 169 individual vaults, with 20 more on HuobiEco as of writing this AutoFarm review. You can then scroll through to see which protocol these Vaults belong to, such as ones being hosted on PancakeSwap, Bakery, or native AutoFarm yield farms.
Each one will have differing yield farming strategies in how they compound your earnings. Currently, the biggest Vault by total value locked would be a “USDT-USDC-BUSD-DAI BLP” farm, offering more than 24% returns APY.
Meanwhile, the most lucrative one would be a “USDG-xGMT LP” farm, flaunting at least 89.1K% returns APY. Granted, high returns often signal high risk. As for fees, AutoFarm is actually one of the cheapest across the Binance Smart Chain in that regard.
There are a variety of different fees that are highlighted as you click on a particular Vault, such as a platform fee that goes to the treasury, deposit fees, as well as a Vault fee. For the most part, the Vault fee is set at either 1.5% or 3.0% for Vaults that don't yield AUTO tokens. Either way, a small percentage of the profits from the Vault fees will be used in a buyback and burn program, which will buy back AutoFarm's AUTO tokens and then burning them to reduce its supply.
As we learned earlier in our AutoFarm review, AutoSwap is a DEX aggregator based on the Binance Smart Chain. Currently, it's still in its Alpha development stage, but a full roll-out and optimization should be ready soon. In practice, whenever you initiate a token exchange, AutoSwap will route and split your trades across multiple different DEXes to find the best price based on the available liquidity.
Its intelligent routing system doesn't charge additional fees and currently works across three exchanges – PancakeSwap, BakerySwap, and JulSwap.
What Are AutoFarm's AUTO Cryptocurrency Tokens?
The native currency of the AutoFarm network is the AUTO token, which is made to be a BSC-based BEP-20 utility and governance token. Staking it allows users to have the chance to take part in the on-chain community governance, such as proposing and voting on network changes.
Otherwise, it can be an appreciative token to just hold. Staking AUTO entitles users to earn additional rewards from the fees collected on AutoFarm. That aforementioned buyback and burning help as well.
As such, the tokenomics of AutoFarm's AUTO tokens are deflationary, as their supply is limited and will be continually burned to increase its scarcity. The total supply of AutoFarm's AUTO is capped at only 80,000, with it being minted and distributed linearly to the public starting from December 2020, all the way to around October 2021. Roughly three-quarters of its supply are sold to the public, with the remainder split between its founding team and treasury reserves.
In terms of value, the price of AUTO as of writing this AutoFarm review is about $1,473.38. Although a handsome 301.78% gain since rising from its all-time lows of $363.81 in February 2021, the price of AUTO is still 89.20% down from its all-time highs of $13,532.25 in that same month. With a market capitalization of $21,341,611, AutoFarm's AUTO is the 701st-most valuable cryptocurrency on the market.
What Do AutoFarm's Future Roadmap Updates Look Like?
The most exciting news to come out as of this AutoFarm review is its plans to eventually support farms built on Polygon, which is a Layer 2 scaling solution for the Ethereum blockchain, and thus opening up AutoFarm's exposure to the massive DeFi ecosystem on Ethereum. They have quite an extensive roadmap planned out for the rest of 2021, as well. Most of Q2 and Q3 of 2021 will be spent integrating new Vaults and expanding into other blockchains.
Not just consolidating more Vaults from BSC and HECO, AutoFarm will move more towards Polygon (MATIC) and Avalanche (AVAX), as well as seeing AutoSwap make a move to support DEXes on those two chains, respectively. Q4 will be more ambitious, not only expanding now onto Polkadot for its Vaults but also introducing entirely new features such as AutoTrade, which is an intelligent trade execution service, and AutoAnalytics, which will combine machine learning and big data analysis all in one for DeFi.
AutoFarm Review – Conclusion
In summarizing our AutoFarm review, we're left quite excited as to what prospects might lie ahead of them in the next few months. If there's one downside to using AutoFarm right now, it's that despite the huge variety of yield farms and strategies that it's compiled together, it hasn't been able to offer its smartness and easy automation to the perhaps more lucrative yield farms on Ethereum, or other blockchains. More would be better, but there's certainly a lot to like as is.
The ability to sit back and relax while AutoFarm's smart contracts and clever tools do the work for you is a blessing. That's not to mention all the extra optimization and calibration that a smart contract can do in milliseconds, where a human can't, in order to make sure that your precious cryptocurrencies net you as much in yields as possible. Overall, AutoFarm is a great platform for anyone looking at maximizing DeFi's already delectable profits to its fullest.
- Ease of Use
- Project Values
- Tokenomics Model
- Long Term Sustainability
- Offers a huge variety of yield farming strategies and tools across nearly 200 individual Vaults on both BSC and HECO.
- Users can easily automate their DeFi assets and investments through auto-compounding and reinvesting returns.
- Offers very low fees compared to other similar protocols thanks to efficient pooling of gas costs for all users.
- Adoption of deflationary tokenomics and burning program for AUTO tokens may make it a highly appreciative asset.
- DEX aggregator can find you the best token swapping rates across multiple DEXs, and at no additional cost.
- Currently is compatible with only BSC and HECO, with no support for Ethereum or other blockchains.