Autoscale, democratize the DeFi !

5 min readMay 3, 2023

Compound interest is an investment technique which consists in reinvesting on the initially invested capital, the interests resulting from the work of this capital, in order to generate more and more interests.
This technique allows you to increase your invested capital exponentially.

When we talk about blockchain and DeFi, we must also take into account the gas costs and those of the protocol. It is therefore necessary to calculate where the ideal moment is to recover your rewards, in order to optimize the time, without ruining the kiss cool effect with the gas bill.

If we add to this that the interest rates of the DeFi are volatile, managing the return of its tokens in an optimized way requires mathematical skills, but also a constant watch.

Autoscale is designed to automate this work, and save you a lot of hassle. You don’t have to be a math whiz or a space monkey, the protocol takes care of everything for you.

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
Albert Einstein

Autoscale Vaults (aVault) & Strategies

The aVaults are on the home page, or on the “Earn” tab.

Each Autoscale aVault is linked to a strategy, which is a smartcontract to which you entrust an asset, be it a token or an LP token.

This smartcontract automates and optimizes the compounding process.

When you make a deposit into a aVault, you receive a certificate of deposit in the form of an avToken, described later in this article.

Boosted vaults

Some aVaults may be boosted, such as currently USDT -ASH.

This means that in addition to the intrinsic compound interest, you will receive rewards from the Autoscale liquidity mining program, paid in ATS token.

You can claim your rewards in ATS tokens in the top right corner on the same tab “Earn”

Protocol revenue

Every protocol needs revenues. How does Autoscale intend to be profitable, and to continue its development?

1- Withdrawal fee: 0.2% (it depends on the asset, the TVL and other factors)
2- Performance fees: 10% (on rewards)
3- Reinvestment fee: 1% (on rewards)

Those who store ATS tokens will get a part of this income, the tokenomic is not yet public, more details to come.

ATS Token

This is the native token of the protocol, it comes with a liquidity mining program seen above with the boosted aVaults, but also via a staking program.

When you stake ATS token, you receive a sATS token as a certificate of deposit. Compound interest is automatically earned within it. You will be able to recover your capital and the fruit of its work by destacking your ATS tokens.

You will also receive a substantial share of the protocol revenues, paid in EGLD.

avTokens

When you entrust an LP token to the protocol, you receive in return its avatar: avToken.

It represents the proportion of your liquidity to the total liquidity entrusted to the aVault.

Over time, compound interest works its magic, and your avToken represents your initial liquidity + earnings.

Perspectives, synergies & questions

A sober interface, with few buttons, and a minimum of actions to perform yourself.
This should encourage many users to take the first step to provide liquidity in DeFi.
A simplification & optimization of the process, costing 10% +1% of the rewards.
Will experienced users prefer to do it themselves, or relieve themselves of the task for this small fee?
A liquidity mining program that in the context of boosted farms, comes on top of the underlying protocols.
This is a great way to attract professional liquidity providers, and to increase the TVL on Autoscale, MultiversX, and other DeFi protocols in our ecosystem.
AvTokens open up the prospect of additional returns, just as with liquid staking.
Partnerships with protocols such as AshSwap, DX25 or Hatom would allow additional yields, for more and more APRs.
This is very good news for the attractiveness of our ecosystem.
Which decentralized exchange will have the honor of listing the ATS token?
A launchpad in sight?
Can’t wait to hear more!
What additional utilities will be deployed for the ATS token, in order to avoid the endless “farm & dump”? Will the liquidity mining program make the token inflationary, or will there be mechanisms in place to collect enough liquidity to maintain it?
The tokenomic, the “Zap” (another surprise to come) will certainly tell us more soon!