Help & Documentation

Frequently Asked Questions About Auto Finance

Everything you need to know about Auto Finance automated DeFi yield farming, Autopools, liquidity management, and more.

$49M+
Total Value Locked
$1.16B+
Total Automated Volume
8,268+
Rebalances Executed
79+
DeFi Destinations
General

Auto Finance (formerly known as Tokemak) is an automated DeFi yield farming and liquidity management protocol. It aggregates multiple blue-chip DeFi protocols and autonomously rebalances liquidity across destinations to maximize returns for depositors.

Users deposit assets into Auto Finance Autopools — smart vault strategies that continuously monitor liquidity pools and lending markets, detecting changes in yields and market conditions. The protocol then rebalances allocations at optimal times without requiring any manual intervention.

Key features include: auto-rebalancing, yield optimization, auto-compounding, and transparent portfolio tracking — all denominated in the Autopool's base asset.

Unlike traditional yield aggregators that simply chase the highest APY, Auto Finance Autopools make intelligent allocation decisions by considering a complete set of metrics:

  • Impermanent loss risk and liquidity depth across destinations
  • Protocol-level risk scoring and security history
  • Gas cost efficiency when rebalancing between positions
  • Slippage and market impact estimates before execution
  • Correlation between assets to reduce portfolio-level risk

This holistic approach means Auto Finance targets sustainable, risk-adjusted yields rather than chasing unsustainable high APYs that often collapse.

Auto Finance is developed and maintained by the Tokemak Foundation. The protocol launched as Tokemak in 2021 and has been operating for over 4 years, accumulating an impeccable security track record during this time.

The protocol recently rebranded from Tokemak to Auto Finance (AUTO) as part of a major upgrade introducing Autopools — a next-generation automated liquidity management system built on the foundation of Tokemak's proven infrastructure.

Tokemak V1 remains accessible at v1.tokemak.xyz for legacy users, while new users are encouraged to use the current Auto Finance platform.

Autopools

Auto Finance Autopools are automated yield vaults that aggregate multiple DeFi protocols and autonomously manage liquidity to maximize returns. Each Autopool focuses on a specific base asset (e.g., ETH, USD) and deploys it across a curated set of DeFi destinations.

Available Autopools include:

  • autoETH — Ethereum-based yield optimization (~3.64% APY)
  • autoUSD — USD stablecoin yield strategies (~5.35% APY)
  • baseUSD — USD strategies on Base chain (~6.44% APY)
  • baseEUR — EUR stablecoin strategies on Base (~2.07% APY)
  • arbUSD — USD strategies on Arbitrum (~4.93% APY)

All returns are automatically compounded back into the base asset, making Auto Finance Autopools fully hands-free investment vehicles.

Auto Finance's auto-rebalancing engine continuously monitors all supported DeFi protocols and liquidity pools. When it detects a more optimal allocation — whether due to yield changes, risk shifts, or liquidity conditions — it automatically executes a rebalance.

The rebalancing process considers:

  • Current and projected APYs across all destinations
  • Gas costs versus expected yield improvement
  • Slippage from entering or exiting positions
  • Protocol-level risk scores and recent security activity
  • Portfolio concentration limits to avoid over-exposure

The protocol has executed over 8,268 rebalances to date, processing more than $1.16 billion in automated volume. All rebalancing happens without requiring any action from depositors.

All rewards earned by Auto Finance Autopools — including trading fees, liquidity mining rewards, and interest income — are automatically converted into the Autopool's base asset and redeployed to generate additional yield.

This means your position grows continuously without any manual claiming, swapping, or reinvesting. The compounding effect accelerates returns over time compared to manually managing rewards.

All returns are transparently denominated in the base asset (ETH, USDC, etc.), making it easy to track your portfolio's performance without complex calculations.

Chains & Protocols

Auto Finance currently supports the following blockchain networks:

  • Ethereum — The primary network with the widest protocol support
  • Base — Coinbase's L2 network with growing DeFi ecosystem
  • Arbitrum — Ethereum L2 with high throughput and low fees
  • Plasma — Emerging network with specialized liquidity opportunities

Supported DeFi protocols across these networks include Aave, Aerodrome, Balancer, Curve, Euler, Fluid, Morpho, and 79+ additional liquidity destinations. The list of supported protocols continues to grow as the platform expands.

Security

Auto Finance (Tokemak Foundation) maintains industry-leading security standards through a multi-layered approach:

  • Extensive Audits: Smart contracts are rigorously audited by top global security firms before deployment
  • Bug Bounty Program: An active bug bounty on r.xyz rewards responsible vulnerability disclosure
  • 4-Year Track Record: The protocol has maintained an impeccable security record since 2021
  • Ongoing Monitoring: Continuous on-chain monitoring for anomalies and suspicious activity
  • Destination Risk Scoring: Each supported protocol is scored for security risk before deployment

You can review all security audits and reports in the Auto Finance documentation at docs.tokemak.xyz.

As with all DeFi protocols, using Auto Finance involves certain risks that users should understand before depositing:

  • Smart Contract Risk: Despite rigorous audits, smart contract vulnerabilities can never be fully eliminated
  • Protocol Risk: Underlying protocols (Aave, Curve, etc.) carry their own smart contract risks
  • Market Risk: Asset prices can fluctuate, and impermanent loss may occur in LP positions
  • Liquidity Risk: In extreme market conditions, withdrawals may face delays or slippage
  • Rebalancing Risk: Rebalancing transactions are subject to on-chain execution conditions

Auto Finance mitigates these risks through comprehensive audits, diversified allocations, risk scoring systems, and conservative protocol onboarding criteria. Always invest only what you can afford to lose in DeFi.

$AUTO Token

$AUTO is the native governance and utility token of the Auto Finance protocol. It replaced $TOKE as part of the protocol's evolution from Tokemak to Auto Finance.

Key utilities of $AUTO include:

  • Governance: Vote on protocol parameters, supported destinations, and treasury allocation
  • Rewards: Earn boosted yields by staking $AUTO alongside Autopool deposits
  • Fee Capture: $AUTO holders participate in protocol fee revenue distribution
  • Ecosystem Access: Priority access to new Autopool launches and protocol features

Former $TOKE holders can migrate to $AUTO at app.auto.finance/auto to continue earning rewards under the new tokenomics structure.

The $TOKE to $AUTO migration is now live. To migrate your tokens:

  • Visit app.auto.finance/auto in your browser
  • Connect your wallet that holds $TOKE tokens
  • Follow the on-screen migration prompts to convert $TOKE to $AUTO
  • Migrated tokens will immediately be eligible for Auto Finance rewards

The migration is a one-way process — once you convert $TOKE to $AUTO, you cannot reverse the transaction. Make sure you understand the new $AUTO tokenomics before migrating. For detailed information, read the official migration announcement on the Tokemak blog.

We strongly encourage all $TOKE holders to migrate as soon as possible to continue earning rewards within the Auto Finance ecosystem.

Getting Started

Getting started with Auto Finance is straightforward and requires no DeFi expertise:

  • Step 1: Visit app.auto.finance and connect your Web3 wallet (MetaMask, WalletConnect, Coinbase Wallet, etc.)
  • Step 2: Browse the available Autopools at app.auto.finance/pools and choose one matching your asset and risk preference
  • Step 3: Enter the amount you wish to deposit and approve the token spending
  • Step 4: Confirm the deposit transaction — you'll receive Autopool shares representing your position
  • Step 5: Monitor your growing balance in the Portfolio section

Once deposited, Auto Finance handles everything automatically — rebalancing, compounding rewards, and optimizing allocations. You can withdraw your position at any time.

For detailed guides, visit the Auto Finance documentation at docs.tokemak.xyz.

Auto Finance Autopools are designed to be accessible and flexible for all users:

  • Minimum Deposits: There are no protocol-level minimum deposit requirements. The practical minimum is determined by gas costs on the respective network.
  • Lock-up Periods: There are no mandatory lock-up periods. You can withdraw your deposited assets at any time.
  • Withdrawal Timing: Withdrawals are processed on-chain and subject to normal blockchain confirmation times.
  • Slippage: Large withdrawals may experience some slippage depending on the current state of the underlying liquidity positions.

For the best experience, we recommend keeping deposits in Autopools for extended periods to fully benefit from compounding effects and to offset gas costs with accumulated yield.

Have more questions? Explore the full Auto Finance documentation or join the community Discord.