Melbourne DAO
Melbourne DAO

@melbourne_dao

19 Tweets 19 reads Apr 16, 2022
Everything you need to know about Autostaking protocols. Literally EVERYTHING.
πŸ§΅πŸ‘‡
#autostaking $TITANO $LIBERO $SPHERE $AURA $ARES
1/ What are they?
The tokens in your wallet get increased automatically and periodically with every rebase (e.g. 30 mins). There is no need for manual staking/unstaking. They often come with super high APYs and frequent rebase period.
$TITANO is considered the 1st in this sector.
2/ How do they work?
These protocols don’t have a cap on token supply (like your fiat). In every rebase, the smart contract prints new tokens and distributes to the holders's wallets proportionally.
This is also why the market caps are insane (MC = Price * Total Token Supplied).
3/ Is it sustainable (Token APY)?
Many doubt because of the unrealistic APY (e.g. 1,284,616% 🀯). Remember, the APY is based on the native token, not USD. Since they never run out of tokens and don't depend on reward pools like node protocols, the token APY is guaranteed.
4/ What about the USD APY?
This is the more important APY we care about, as the token could worth nothing or 100x. To achive a similar APY for the USD, the token price must be stable.
There are many ways to achieve this as a project. Below are the 3 main categories.
4.1/ Avoid selling pressure
- The ever-growing tokens. The protocol itself creates a psychological effect. It's just addictive to watch your tokens grow and forget about selling.
- Charging a high tax each sell.
- $TITANO even banned all the whales from dumping.
- Lock them up.
4.2/ Attract new investors
- The insanely high APY.
- The $TITANO robust performance over the past 4 months, despite the bear market.
- Other passive income protocols haven’t been performing too well recently. Autostaking szn is taking a good advantage of it.
4.3/ Incentivize existing investors
- Reward gets boosted if you can lock up your tokens.
- Lottery, by staking the tokens.
- Profit distribution from the treasury investments.
- Earning reflections from the trading volume.
- Creating utilities via P2E games and NFTs
5.1/ The unspoken facts
Unlimited supply doesn’t mean hyperinflation. The gist is that every holder’s bag grows at the same rate. The ratio between your tokens compared to the total supply will always be the same. This is no inflation when everyone's wallet gets bigger together.
5.2/ The unspoken facts
Dips on the charts can stop people from watching the token rebase, pausing the psychological effect, and start to think about selling. So when there's a dip, many transactions follow. This explains some similar patterns in many charts.
5.3/ The unspoken facts
The winning strategy is to grow the tokens faster than others, and take profit constantly before someone dumps hard on you.
e.g. In $LIBERO, you can lock half to earn more rewards, and take 1% profit daily from the other half.
6/ Why is the APY so high?
The token APY doesn't matter that much, as the protocol can emit tokens endlessly. The major part of this is marketing + the compounding power.
So what you should care more is the measures a project adopts to keep the price stable.
7/ Why is the tax so high?
In order to avoid selling pressure while growing the treasury and liquidity pool.
8/ How did $TITANO survive for 4 months and still looking strong?
There were hiccups over the 4 months if you look at the chart. Ever since they banned all the whales, the price has become stable.
9/ How do they compare to Nodes and $OHM forks?
- They don't depend on reward pools.
- The supply is unlimited.
- There's no need for manually staking.
- (3, 3) game theory is already embedded in the protocol, i.e. everybody stakes, no need for the investors to execute.
10/ What are the innovations?
$LIBERO and $SPHERE are really standing out in this topic. They started with the $TITANO model but quickly move to create new features, such as bonding, lockup, reflections, $SPHERE war (like the curve war), QLaaS.
Some even introduced NFTs and P2E.
11/ Should I invest?
Right now the sector is a bit saturated, many new projects are quick money grabs.
- The safer play is the "blue chips": $TITANO $LIBERO $SPHERE which have been tested for a longer period of time
- The high-risk-high-reward play is to find the NEW gems.
12/ How to find the NEW gems?
- Innovations: If a project only mentions high APY, rebase, auto burn, auto liquidity pool, etc.. Skip it, these are templates. No need to risk it when the team don't put much thoughts on the project.
- Vibes: Marketing = buys. Community = πŸ’ŽπŸ™Œ
13/ Where to find the gems?
I put together an autostaking aggregator on Airtable, where I hand picked, reviewed, and rated them.
Link: xn--tr8hpjsac.y.at

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