Roadmap
As you now know, AutoLayer is the evolution of Tortle Ninja. With Tortle, we stretched the limits of conventional DeFi, and with AutoLayer, we plan to surpass those limits.
AutoLayer V2
AutoLayer Version 2 will elevate EigenLayer and AVSes to new heights by introducing a new layer for information and automation aimed at streamlining, automating, and securing all ecosystem interactions.
Virtual Operator and Vaults creation
AutoLayer users will be able to create a Virtual Operator, configure it, and run it. This Operator can validate different AVSes. Once an Operator is created, AutoLayer will try to qualify it for all AVSes involved at a small cost. If an AVS has a cap that has been reached, we will notify the user trying to create an Operator for it. A minimal amount of ETH might be used to pay for the infrastructure needed to start the Operator. The vaults themselves may have different rules when it comes to automation, autocompounding, opt-out, and others, but we will manage all the infrastructure behind it. Once the Operator has started, any user can allocate funds to it.
AVS Vault Manager
The Vault Manager is where users can allocate funds to our Operators. Every Operator inside AutoLayer will validate a different set of AVSes, creating different products with different yields and risk profiles. These vaults will gather both illiquid and liquid assets, so we will use different strategies to increase yield, from auto-compounding liquid rewards to converting illiquid assets to liquid ones by creating wrapped versions of said assets. The Vault Manager will also measure profitability, showing realistic dollar-based APRs (this means incentive inflation will also be measured). The Operator inside a vault can change the AVS composition based on information and the automations AutoLayer provides.
V2 Features:
AVS Scoring
AVSes might be the biggest question mark in today's crypto cycle as they will be the driving force behind yields during this time. How well or how poorly they behave will shape the future of the DeFi industry as we know it. This is why auditing AVSes will be important. For every AVS on AutoLayer, we will create a risk score based on two metrics:
Professional Operators TVL: This metric will gauge the involvement of institutional and professional Operators (such as P2P, Ankr, Nethermind, etc.) in an AVS by assessing the amount they have staked on it. This measurement generates a risk profile based on factual data from funds deposited by professionals, rather than subjective opinions.
Community TVL: This metric will quantify the level of support an AVS receives from retail investors, with insight into the amount of retail money backing it. This also contributes to the creation of a risk profile for the AVS.
Sudden changes to these risk scores can help our users stay informed.
LRT Scoring
LRTs can be used as collateral in markets and leveraged positions can be obtained by looping them. While this is a valuable feature with market potential, it also carries certain risks. An extreme event leading to a sudden depeg could trigger a cascade of automatic liquidations, resulting in the creation of bad debt in money markets. However, markets on DeFi are generally transparent. This allows us to determine the amount of collateral in money markets compared to their Total Value Locked (TVL), providing insight into the level of rehypothecation of an asset, at least within the DeFi space. This information can contribute to a risk/reward profile, enabling users to make more informed decisions about their purchases.
Compounding and Liquification
When it comes to rewards, the EigenLayer (EL) ecosystem will share both liquid and illiquid assets. Our vaults will have two functions:
We can auto-compound the results, getting AVS tokens/incentives, converting them to ETH, and reinvesting it.
As Points are non-transferable, our vaults can gather points until the next Token Generation Event (TGE), account for each user's share, and mint a wrapped version of all their reward tokens.
AutoLayer will not create markets for these tokens, but users can. Users will also be able to mint and burn these tokens at any moment. During a TGE, we will allow every user to claim their EL/AVS tokens with a 1:1 ratio by burning the wrapped versions of said tokens.
Slashing Tests and Bounties
We will create a bounty system wherein if a user identifies that a slashing condition is met, instead of directly claiming the bounty, they can trigger an auto-delayed process where they can earn the same rewards with additional bonuses. This contract will play a crucial role in safeguarding our users from slashing by halting the validation of the AVS before the slashing event occurs. The same contract will also execute the slashing to prevent the possibility of double-dipping. Stakers will be charged a small fee to contribute to the bounty fund.
LRT Rehypothecation (this part is still in study)
Like any other leveraged strategy, rehypothecation is not easy, but it can unleash the potential of large yields. In AutoLayer, we will create a rehypothecation manager to boost these yields wisely:
By separating the principal from the yield and rehypothecating it, you can compound more yield over time while protecting your principal.
By leveraging and deleveraging the principal, AutoLayer will allow stakers to Loop their LRTs wisely, reducing liquidation risks (however, this is still risky and the staker should understand this).
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