AutoFarm Yield Aggregator on Binance Smart Chain: APY Explained

[00:00:00]auto farm is a yield aggregator on the binance smart chain this means that you simply deposit cryptocurrency and the smart contract looks for the best d5 protocols to give you the highest yield while you sit back relax and let the smart contracts do all the work hey everyone and welcome i'm robert with altcoinbuzz and in today's video we're looking at autofarm which is a yield aggregator on the binance smart chain so first off i want to start off with what is a yield aggregator a yield aggregator can best be thought of as a robo advisor but for cryptocurrency or decentralized finance so when i deposit cryptocurrency to autoform it's going to look for the best d5 protocols to optimize my total returns now why would you want to do this well if we look at d-app radar we can see that there are several different d5 protocols on binance smart chain and you would have to do a lot of research to determine which of these has the best yield and even if you did determine which had the best yield it could be risky so venus venus protocol here is one that i did a review on about two weeks ago and it had a lot of interesting features so right now i'm simply lending uh busd but if you remember from the actual video on venus i was earning about a 39 apy because i was lending bnb taking out collateral minting stable coins staking those stable coins and i was doing a lot of steps to really ratchet up that interest rate however everyone might not want to do that that might be a lot of work that might be a lot of technical know-how for some people so with autoform we can let the smart contracts take care of all that for us so that's kind of an overview of what a yield aggregator is um just to kind of compare it with ethereum if you've heard of harvest finance urine finance it's similar to that but we're operating on the binance smart chain so we have that additional advantage of the low transaction fees and fast confirmation times now that we know about yield aggregators in general i want to jump just a little bit into the auto farm network white paper because i do believe it's very important to always understand what you're investing in and the risks as well so the first thing that i want to start off with is that there are some risks there's always smart contract risk there's always the risk of impermanent loss so it's important to do your own research and never invest more than you can afford to lose however i do want to say that autoform has taken several steps to mitigate risks so they've equipped all smart contracts with 24-hour time lots except the auto rewards multiplier at 12 hours and having reputable auditors to audit the entire project so they've been audited by and chain ai vidar and they are also currently working to get certic to audit their smart contracts now one other thing that i did find interesting is that most of their vaults which the vaults are the different protocols you can deposit crypto into they're all kind of based off one smart contract so they know it works they know it's secure and anytime they build a new vault they just basically change some of the parameters so they don't have to create everything from scratch every time they can stick with what they know is working so that's a little bit of the risks obviously it's important to do your own research everything like that but now let's go ahead and actually jump into auto farm what you all want to know which is how do i use it and what can i expect to return so when we're looking at auto form right here we see that on the main page we actually have a day in a night mode i'm going to be on light mode because i think it'll be easier for the video it has various different vaults here different assets that we can contribute so this the usd we have tether we have usdc we have if we have dot there's a lot of different vaults that we can contribute to and the thing that i like is it automatically does the workforce of determining where we're going to get the best yield so let's suppose that i have this busd here if i click the drop down arrow what it's going to show me is several different details so the asset obviously busd it's going to show me the current price of that asset it has the auto multiplier the type is obviously going to be auto compounding and this is what i really like is that it tells us the farm name so it's telling us where that cryptocurrency is going so we're not just throwing money into autofarm and not knowing where it's going it's specifically telling us we're going to be farming through venus if we go down to some of these other ones let's see cake will probably be different yes so pcs right they are not going to be using venus and i'm pretty sure this tan stands for pancake swap so that's that's something i do really like is it tells us exactly where our crypto is going to be in addition to knowing where our crypto is going it tells us the apy so when we're talking about autoform there's really two components of apy there is the farm apy which is what we're getting from that robo advisor so i say robo advisor that smart contract putting our money to work for us that's one part of our yield the second part of our yield is that distribution of the auto tokens so i'll get into that a little bit later but just know your reward is really composed of two different parts so our farm apr on that busd is going to be 19.3 and again that's through venus so every strategy that could be used through venus this smart contract is already doing it for us we don't have to worry about going and taking collateral minting vi staking vi it's all done for us and what you see is it also includes the apr on auto so this is how much we're profiting from the distribution of the tokens so i'll get into more of the tokenomics of auto in a minute but for right now just keep in mind that your reward is composed of two separate parts so even if we were to employ the optimal strategy of let's suppose going on venus and doing everything right to maximize that yield on our busd we would still be getting an additional benefit by lending here because we're getting that same yield right we're still getting that busd but we're also getting those auto tokens on top of it so it's kind of like an added bonus if you've used compound and you've got the comp token if you've used uniswap you've got the uni token you kind of understand how that works additionally there are some fees so there's a controller fee a platform fee auto buyback rate max entrance fee a couple different things here just know that the fees um the fees go to some of them go to supporting gas paying these transaction fees some of them go to the platform such as paying for audits stuff like that but at least they're up front they're honest you can see where those fees are going some of them go to buying back the auto tokens so auto token is actually deflationary which let's go ahead and talk about the auto token because i keep hitting on auto and it's it's best just to get that out of the way so there's a max supply of 80 000 auto and auto forms started with no farm no preform no pre-sale so these are minted literally starting from the 15th of december and it's going to end about october 21 so this isn't like an indefinite rewards program it's really rewarding kind of these early adopters of the program so to ensure fair distribution of auto only volt users non-turbo vaults will be able to mine auto and i'll show you the difference between those two in a minute as i said it is a deflationary token vault fees remember when i was talking about the fees 1.5 to 3 on the vault users profits are used to perform market buybacks and those auto tokens are burnt out of supply forever so not only is there a limit on how long they're going to be giving these rewards but on the profits that that vault is making they're actually using some of those profits to burn the tokens making it deflationary and hopefully increasing the value of it as well and just looking at their roadmap here it looks like in september they're looking to form the dow formation and governance so just me making my prediction remember we said that those auto rewards are going to end about october so my guess is that at some point those auto tokens are going to be very valuable for creating the governance decentralized governance structure basically of autoform so that's kind of a look at the token how it gets its value what it can be used for different things like that alright so let's suppose that i'm finally ready i actually want to go through i want to deposit my crypto into autoform and let it start earning me those rewards how do i do that it's really simple all i have to find what asset that i want to work with so in my binance smart chain wallet i've currently got some cake so what we're going to do we're going to scroll down to cake we're going to deposit the maximum amount let's make sure i'm connected here connect wallet finance chain now we should be able to click max go ahead and deposit that and it's going to ask for an approval which of course we will give alrighty so our transaction has went through and now what we see is that we have under this deposit column we have just a small amount 1.96 worth of cake now obviously that is not going to earn us rewards very fast however apr is apr so whether we're earning 39 percent apr on two dollars or 39 ap percent apr on 100 the actual apr itself is going to be the same so that's pretty cool and then whenever we want to harvest our rewards again we do not actually have any at this point just because i put such a little amount in we would simply click harvest go ahead and confirm that transaction pay the network fee and then we would get those auto rewards as well so very simple process i always like to do everything in reverse just to show you all how to get out of what you've gotten into basically so we're simply going to go to the max amount click withdraw and then we will withdraw that back to our wallet and our withdrawal is complete we log back into our binance smart chain wallet and we can see that cake is back sitting in our wallet so one thing that i did really quick want to show you is there's a difference between vaults and these turbo vaults so a turbo vault as you can see has absolutely insane apy 2.4 000 so um yeah pretty insane and they also say these forms have not been reviewed by the autoform team do your own research use at your own risk so the standard farms these are the ones that you can actually earn those auto rewards on so auto rewards are only available on these traditional farms and then if you look at the turbo farms yes they do have a higher apy but number one you don't get those auto tokens and secondly they have not been reviewed by the auto team so in general auto form or other yield aggregators in general are a way of simplifying your decentralized finance experience it's a way of simply depositing your crypto letting the smart contracts go to work for you find those best yields while you sit back and focus on other things so obviously it's always important to do your own research be aware of the risks but it's an easy program to use i found it quite simple i really like it and i hope you got something out of the video i hope it at least showed you a little bit more about autoform how it works some of the risks some of the rewards that could be involved with it so as always i'd like to thank you for watching if you all have anything that you want us to take a look at we try to read the comments we go through and we try to get audience input as far as what products we check out which is one of the reasons why we started doing a lot on the binance smart chain so anything you all want us to cover be sure to leave it down below i'll take a look at it and see what we can do so thanks for watching i'll see you next time