Autofarm is one of the more popular yield farming Dapps on the Binance Smart Chain.
I've found it to be a reliable enough platform so far on which to park some of my 'major' coins in vaults (and one pool) for a pretty decent return, BUT the AUTO price (which you're partly paid in) has gone down from $6000 from the time I got in, to $3000 just a couple of weeks later!
Most vaults and pools offer you payment in a combination of whatever you've got staked (which I like) and the AUTO token - and the proportions vary a lot from vault to vault and pool to pool.
For example my BNB vault pays out around a 45% APY at about 50-50 BNB (which compounds!) and AUTO:
(NB I'm not in that pool, I am on Pancake Swap though.)
While if you were in the cake-BNB pool you'd get a much higher percentage of Cake/ BNB LP compared to AUTO:
Declining returns but still perfectly reasonable!
The APY yields have come down a lot in recent weeks - the three stable pools I'm in are all now 'only' around 40%, they were up at around 100% previously, and the BTC pool I'm is now < 30%.
The auto-BNB pool I'm in is still returning a 200% return, but that's purely in AUTO, and the higher percent is because you have to hold AUTO to get the return, so they boost it I guess!
The volatile AUTO price...
I mean we all know crypto is volatile, right, and so it's probably no surprise that this derivative DEFI token has seen wild swings in price recently..... it was $12K just a couple of weeks ago and now it's $3K!
I did buy some when it was around $5K I think it was, but not very much, and precisely because of this reason.
I wonder how many people got burned by this and bought in harder at $7, $8, $9K or more?
Of course the thing about derivatives is that this price could go back up just as fast when BTC returns to the upside, for me though, it's nice to earn auto, risky to buy, even at $3000.
NB watch out for September 2021
According to Auto's Docs, the print run for AUTO comes to end sometime in October, I've no idea what happens then, there's 'governance' on the road map in September but no details yet.
It's just something to keep an eye on - what happens in the way of development on Auto up to September. I guess if there's no clear indication of where it's going, pulling everything out before then might be a good idea? And maybe well before Autumn too?!?