% Automatic tokens (%AUTO) represent a basket of stablecoins bearing interests.
The system automatically rebalances the underlying stablecoins bearing interests in order to hold the most profitable tokens and to maximize yield.
Example:
Example of market conditions in DeFi lending with Aave.
In these market conditions, the % Automatic basket would sell its positions in DAI and USDT to buy USDC. USDC tokens will be hold as underlying assets for %AUTO holders until the market conditions change and another stablecoin gets a better yield than USDC.
Example of a rebalancing to maximize the USDC exposure.
What is the expected yield?
According to past market data, the expected yield of the % Automatic basket is around 10% APY (Annual Percentage Yield). It could go up to >15% APY depending on the market conditions and efficiency of the Basket rebalancing.
What are the risks?
To know more about risks, please refer to the SECURITY section.
The % Automatic Basket is the less risky Basket proposed by Cableway. It is not directly exposed to volatile crypto-currencies: It is composed of tokens representing recognized stablecoins bearing interests (USDC, USDT, DAI in the form of aTokens).
