Tokemak
Tokemak is a liquidity aggregator designed to give users the ability to provide liquidity and earn protocol incentives for staking various crypto assets. Users actively vote where to deploy liquidity in order to maximize yield for all depositors.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: TOKE
- Tags: Yield Aggregator
- TVL: $80M (Rank #99)
- TVL Ranking by Yield Aggregator: #0
- Blockchain: Ethereum, Base
- Chain TVL
- Ethereum: $76.21M
- Base: $3.81M
- Code reviewed by several experienced auditors including Omniscia and Quantstamp
- Public team promotes accountability
- No documented protocol hacks since launch
- Latest protocol version launched recently in 2024; maturity less than three months increases technical risk as smart contracts are not battle-tested
- Top 10% by total value locked reduces risk
- Multisig wallet controls protocol upgrades
- Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
- No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
- Low voting power concentration reduces risk
- This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
- Tokemak's Autopools autonomously rebalance LP positions across a set of DEXs and assets
What is Tokemak
Tokemak’s Autopilot is designed to autonomously manage and rebalance liquidity provision across various DeFi protocols to optimize yield and performance for liquidity providers. Users deposit their assets into an Autopool, receiving Liquid Auto Tokens (LATs) in return. Autopilot then continuously monitors the underlying pools and utilizes its Solver to propose rebalance strategies that aim to maximize the Composite Return Metric, which considers factors like APR stability, gas fees, and slippage. These proposals are vetted by the Strategy Contracts to ensure they meet predefined constraints and safety standards before execution. This automated process abstracts the complexity of manual rebalancing, allowing users to benefit from optimized liquidity provision without active management.
How Tokemak makes money
Tokemak generates revenue through several key mechanisms. Firstly, it charges management fees on the assets deposited into Autopools, which are used to cover operational costs and further development of the protocol. Additionally, Tokemak earns performance fees based on the yields generated through Autopilot’s rebalancing strategies. These fees are typically a percentage of the profits earned from optimizing liquidity across different DeFi platforms.
How you make money on Tokemak
As a user of Tokemak’s Autopilot, you can earn significant returns by depositing your assets into Autopools and receiving Liquid Auto Tokens (LATs) in return. These LATs are yield-bearing and can be seamlessly integrated across various DeFi applications, allowing you to earn compounded yields without actively managing your liquidity positions. Autopilot continuously monitors and rebalances your assets to deploy them into the most profitable pools, optimizing your yield based on real-time market data and sophisticated rebalance logic. Additionally, by participating in Autopools, you contribute to the overall liquidity of the DeFi ecosystem, potentially earning a share of the trading fees and rewards generated by the underlying protocols. The automated nature of Autopilot ensures that your investments are consistently optimized for maximum returns, providing a hands-off approach to liquidity provision that enhances your earning potential while minimizing operational complexities.
