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Autonomint is slated to launch in March 2025 with audits already completed. As we are nearing to launch, it is necessary to touch upon incentivization of Liquidity Pools.
We want to create sufficient USDA+ liquidity and will be sharing a big percentage of protocol revenue on-chain to users who have staked their LPs.
Autonomint will be deploying USDA+ /USDC pools on any of Curve/Velodrome/Uniswap/KIM exchange.
Autonomint has a unique design where apart from minting USDA+ stablecoin, we also hedge user’s collateral price fall. If you mint & borrow a stablecoin from any of the existing stablecoin protocols then you are require to deposit a high amount of collateral. There is also the risk of liquidations which can happen as soon as your collateral value decreases to 110% of your minted stablecoin value. So, you as a user are always anxious of getting liquidated with an excess amount of collateral. Thus, that’s why users like to maintain a high buffer to avoid this scenario.
At Autonomint, a user minting USDA+ against their ETH collateral is offered 100% synthetic LTV. It is composed of below
So, if a user deposited $1000 in ETH then they will be able to mint $800 in USDA+ and the rest $200 is protected from any price fall. Later on, when you come back to return the USDA+ amount and if your collateral value has fallen to $850 then you don’t need to be concerned about the same. A user will be getting the full $1000 value back itself as you are always hedged through our dCDS module.
Every open debt position that has minted 80% in USDA+ against their collateral is getting accrued an interest every second. All of this interest proceeds are continuously split between protocol treasury and Curve pools. Currently, 75% of interest collected will be directed to pools and 25% will be kept in Autonomint treasury.
Along with that, every open debt position will be charged an option fees to provide the hedging protection for the collateral. This option fees is directed to users who participated in our dCDS module. The protocol is taking a 10% cut of that fees to be directed to protocol treasury. We will be directing half of above revenues with the Curve pools.
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The above diagram highlights 3 sources of direct revenues.
Borrow Fee - An yearly interest rate charged on per second basis to the debt positions opened on Autonomint. We will share 75% of that revenue with LPs
Option Fees - A monthly hedging fees charged to users getting their ETH hedged at Autonomint. A 10% of this hedging fees is shared with LPs.
Farm Your Luck - Users can participate in this to claim back their option fees or earn rewards from partnerships done. We charge a participation fee for this, all of which will be directed to our deployed pools.
Autonomint has unlocked some new ways to earn yields which has never been existing neither in the TradFi world nor in the crypto world as of now. The people participating in this will be one of the first users to partake in this kind of mechanism.
One of the unique value propositions of our protocol is that we allow users to cheaply hedge their positions. So, if you were to hedge 1 ETH or protect from any downside price fall on 1 ETH then you have to pay around $220 - $250 premiums or option fees in current derivative protocols ( 1 month expirty). At Autonomint, you can do the same 1 ETH Hedge for $120 option fees which is $100 lesser than charged anywhere else.
We are introducing ‘Option Fees Farming’. This is how it happens
If a user deposited 1 ETH ( current price $2700) in Autonomint
Total borrowed Amount = 2060 USDA+