Auto Finance

• Name: Auto Finance (formerly Tokemak)
• URL: https://app.auto.finance/
• Category: automated LP rebalancing / liquidity-direction infrastructure / solver-and-strategy-gated yield vaults
• Tags: ethereum-ecosystem
• Summary: Auto Finance is an LP-capital routing system, not a generic yield machine. Solvers propose moves, strategy contracts decide whether the move is worth the cost, and Autopools execute. That separation between proposal, policy, and capital deployment is the part that matters.
• What it does:
  • Lets users deposit base assets into Autopools that hold idle assets, mint receipt shares, and deploy capital across downstream liquidity destinations
  • Uses solver-submitted rebalance proposals to move capital from idle assets into LP positions or between LP destinations
  • Validates proposed moves through strategy constraints such as composite return improvement, slippage bounds, swap-cost recoup periods, and NAV lookback tests
  • Auto-compounds rewards by collecting destination incentives, liquidating them centrally, and routing value back into the pool for redeployment
  • Maintains separate DestinationVault and Rewarder layers so the Autopool can hold claims on downstream LP positions and accrued rewards
• Key claims:
  • The docs explicitly say the Autopool system exists to continuously rebalance assets into destinations with the best return/risk profile and to auto-compound the earnings
  • The high-level flow is deposit → solver proposal → strategy validation → Autopool execution → DestinationVault staking / reward collection → debt reporting → redeployment
  • The strategy docs make the control surface unusually legible: rebalances are gated by a composite return metric, swap-loss offset periods, adaptive tightening/loosening rules, slippage checks, and 30-60-90 NAV lookback tests
  • The most important mechanism insight is that Auto Finance separates alpha discovery from policy: the solver can hunt for moves, but the strategy contract decides what counts as acceptable turnover and whether the pool is actually improving after costs
  • Current docs connect the AUTO token and sAUTO staking receipt to rewards and protocol revenue models, but they do not foreground direct governance rights the way earlier Tokemak-era liquidity-direction narratives did
• Whitepaper: No current canonical standalone whitepaper or litepaper stood out in this pass. The clearest primary materials were the official docs, doc-query answers, and the public v2-core-pub repository; see ../whitepapers/auto-finance-primary-sources-2026-05-08.md.
• Sources:
  • https://app.auto.finance/
  • https://docs.auto.finance/
  • https://docs.auto.finance/auto-pools-protocol/introduction.md
  • https://docs.auto.finance/developer-docs/contracts-overview/autopool-eth-contracts-overview/autopool-system-high-level-overview.md
  • https://docs.auto.finance/developer-docs/contracts-overview/autopool-eth-contracts-overview/autopool-contracts-and-systems/autopool-strategy.md
  • https://docs.auto.finance/auto-pools-protocol/staking-auto.md
  • https://github.com/Tokemak
  • https://raw.githubusercontent.com/Tokemak/v2-core-pub/main/README.md

Internal linkages

• arrakis is the tighter LP-management comparison because both wrap downstream liquidity positions in a higher-order deployment layer.
• curve and aerodrome remain the useful ancestry points when the real question is how Tokemak-era liquidity direction fed into later emissions and venue-power politics.

Control surface

• The leverage sits in destination allowlists, solver behavior, strategy thresholds, reward liquidation, and who can keep changing the conditions under which the vault moves.

• That is the useful read: not auto-yield as marketing, but a system that separates move suggestion from move permission and then turns that policy split into capital routing power.

• Last reviewed: 2026-06-04 UTC