How it works
From deposit to compounding yield in four steps.
AutoLayer turns a multi-protocol restaking strategy into one flow. Here is what happens between your click and your position.
The flow
Four steps, one interface.
- 01
Deposit
Connect a wallet on Arbitrum and choose what you want to hold, an LRT or LST option. You start from assets such as ETH or an LST you already own.
- 02
Route
AutoLayer does not swap, mint or open perps by itself. Its intent-based engine connects to partners and the liquidity on Arbitrum, then selects the route with the best market price and gas cost.
- 03
Consolidate
Where a strategy needs several steps, AutoLayer combines the transactions so you confirm once. Funds pass through the AutoLayer proxy contract on the way.
- 04
Hold and compound
You keep the position while yield is conserved and compounded. Today that means points accrue on your volume. V2 plans vaults that auto-compound liquid rewards.
Under the hood
Intents, not swaps.
You state what you want to end up holding. The intent engine works out how to get there. In V1 it connects to EigenLayer, Kelp DAO, Renzo Protocol, Uniswap, Balancer, ParaSwap, Camelot (through ParaSwap) and GMX, and to the majority of liquidity available on Arbitrum.
AutoLayer is not the venue that fills the trade. It chooses between venues, which is why the price you get depends on the market at that moment, not on a fixed AutoLayer quote.
V2 extends integrations to other protocols that deploy LRTs on Arbitrum.
Proxy contract and points
One contract counts the volume.
AutoLayer uses a proxy contract. Each time funds pass through it, the protocol tallies the points added to your wallet.
1 point
per $1 of value traded.
- Record
- Points are recorded on a smart contract, the source of truth for any future distribution.
- Active users
- We define a daily active user as a wallet that interacts with the proxy contract at least once.
- Conversion
- Points are designed to convert into tokens in a future airdrop.
AutoLayer V2 roadmap
An information and automation layer for EigenLayer.
V2 aims to streamline, automate and secure interactions across EigenLayer and its AVSs.
Everything below is on the V2 roadmap and ships in stages.
01 Virtual Operator and vault creationCreate and run an operator that validates chosen AVSs.
Users could create, configure and run a Virtual Operator that validates chosen AVSs. AutoLayer would run a qualification process for each AVS at minimal cost and notify you if an AVS has reached its cap. A nominal amount of ETH may cover the infrastructure. Once the Operator is live, any user can allocate funds to it.
02 AVS Vault ManagerAllocate funds to operators with dollar-based APRs.
The place to allocate funds to Operators. Each Operator validates its own set of AVSs, so vaults differ in yield and risk. Vaults would hold liquid and illiquid assets, show realistic dollar-based APRs to measure incentive inflation, and let Operators adjust their AVS mix using AutoLayer data.
03 AVS scoringA risk score for each AVS from operator and community stake.
A risk score for each AVS from two inputs. Professional operators TVL is the amount institutional operators such as P2P, Ankr or Nethermind have staked on it. Community TVL is the amount retail stakers have put behind it. Sudden changes in the score are meant to keep users informed.
04 LRT scoringShows how much of an LRT is rehypothecated in money markets.
LRTs can be used as collateral in money markets, which allows leveraged looping. A sudden depeg could trigger cascading liquidations and bad debt. AutoLayer plans to compare collateral in money markets to an LRT's TVL, showing its rehypothecation level.
05 Compounding and liquificationAuto-compound rewards and wrap non-transferable points.
Vaults would auto-compound rewards: collect AVS tokens, convert them to ETH and reinvest. Because points are non-transferable, vaults would also accumulate them until a token generation event (TGE), then mint a wrapped version of each user's share. At TGE, users could burn the wrapped tokens 1:1 to claim the real ones. AutoLayer does not create markets for these tokens.
06 Slashing tests and bountiesA bounty contract that halts an AVS before slashing.
A bounty contract where a user who spots a met slashing condition can trigger an auto-delayed process, earning the same reward plus a bonus. The contract is designed to halt validation of the AVS before the slashing event, and to execute the slashing itself to prevent double-dipping. Stakers would pay a small fee into the bounty fund.
Talk to the AutoLayer team
Partnerships, integrations, press or support. We reply within two business days.