Autopilot
Autopilot is an automated management tool for sAERO stakes. Token Operators direct Allocation Power to pools via Autopilot based upon the Operator's chosen allocation strategy. Autopilot can also claim Exchange Revenue, and either compound rewards back into the deposit or convert them to a target token.
What is Autopilot?
Autopilot is one of the primary ways Token Operators participate in Predictive Allocation without active management. Autopilot assists by directing Allocation Power to pools based on pre-configured algorithms, claiming the resulting Exchange Revenue, and either compounding it back into the deposit or converting it to another token.
How Autopilot works
First, AERO is staked to produce sAERO. Then, the Token Operator selects a strategy and deposits into the Autopilot which will execute based upon preconfigured algorithms. From there, Autopilot can:
- Direct the Operator's Allocation Power to pools across every network Aero is on.
- Claim Exchange Revenue (trading fees, MEV capture, Liquidity Payments, and Launch Payments) as that revenue accrues.
- Route the revenue, typically compounding back into sAERO.
Under the hood of Autopilot
- Pooled sAERO stakes act as one allocator. Autopilot's pooled deposits appear as one allocator from Predictive Allocation's perspective, with size and influence proportional to total deposits.
- Allocations are continuous. No epoch timing. Autopilot's keeper allocates and reallocates as conditions change, subject to the 47-hour allocation cooldown.
- Cross-network by default. Autopilot can allocate to pools on any network Aero is deployed on, claim rewards on those networks, and bridge them as needed to the target token.
Operator options
Autopilot offers different options for different use cases:
| Aspect | Preset strategies | Marketplace strategies |
|---|---|---|
| Strategy | Rules-based fixed allocation strategies | Configurable allocation rules set by marketplace operators |
| Management | Permissionless; anyone can deposit | Permissionless; anyone can deposit |
| Processing Rule | Compounder or Converter (selected at creation) | Compounder or Converter (operator-configured) |
| Best For | Token Operators wanting automation of an allocation strategy | Token Operators looking to utilize a custom automation strategy or tailored reward processing |
| Flexibility | Limited; strategy and processing rarely changes | High; operators adjust parameters as needed |
Processing rules for revenue
Operators can choose to route claimed Exchange Revenue through a processing rule that determines what happens to those rewards. Autopilot offers two options:
| Processing rule | How it works | Best for |
|---|---|---|
| Compounder | Trades rewards into AERO and stakes them into the pooled sAERO. Each compounding depositor's share appreciates as the pooled balance grows. | Stakers seeking long-term compounding growth and increasing Allocation Power |
| Converter | Trades rewards into one target token (often USDC), held for the Operator to withdraw. | Stakers wanting regular rewards in a token without reinvestment |
Configuration options
| Detail | Description |
|---|---|
| Performance fee | A configurable fee per Autopilot option may apply, deducted from the withdrawn amount so other depositors are unaffected |
| Compounding cadence | Keepers trigger compounding and conversion automatically. Cadence depends on the option's configuration and the current reward stream size |
| Cross-network reward handling | Autopilot claims rewards on each network, then bridges them back to root for processing |
| Deposit type while pooled | Depositors hold an internal share of the Autopilot option's pooled sAERO. The original sAERO NFT remains at zero balance and serves as the withdrawal key. On withdrawal, the depositor receives a fresh sAERO stake with the corresponding amount. The returned deposit inherits the pooled deposit's duration and staking status. |
| Autopilot listing | Available Autopilot options appear in the Stake tab alongside manual staking. Each option's detail view lists its processing rule, target token, current depositor count, and historical performance |
What Autopilot depositors earn
Token Operators who activate an Autopilot option earn a proportional share of the Exchange Revenue generated by its pooled Allocation Power. As Autopilot directs Allocation Power to productive pools, those pools generate trading activity, which produces revenue that flows back to the pooled stake. Rewards grow based on the Autopilot's overall performance and the Token Operator's deposit size relative to the total pooled balance.
With the Compounder processing rule, earned revenue is automatically reinvested, compounding the depositor's share over time. With the Converter processing rule, earned revenue is converted to the target token (typically USDC) and held for withdrawal, providing regular rewards.
What APRs include
The APR (Annual Percentage Rate) displayed for an Autopilot option represents an estimate of the annualized return from all Exchange Revenue sources, including:
- Trade fees from trading activity in allocated pools
- MEV capture from activity in allocated pools
- Liquidity Payments directed toward allocated pools
- Launch Payments directed toward allocated pools
The APR is a forward-looking estimate based on current pool activity, incentive programs, and Autopilot's allocation rules. Estimated APR will change with changes to protocol activity.
APR volatility and what drives it
Autopilot APRs are not fixed and fluctuate based on several factors:
- Pool volume. Pools with higher trading volume generate more trade fees, increasing Exchange Revenue and APRs. When volume declines, APRs decline proportionally.
- Autopilot allocation. Autopilot directs pooled Allocation Power to pools expected to generate the most revenue. If Autopilot reallocates to lower-volume pools, or if previously productive pools see reduced activity, APRs may decrease.
- Incentive programs. Liquidity Payments and other incentives boost short-term APRs. When incentive programs end, APRs may decline.
- Network conditions. MEV capture and other network-specific fees vary with network activity and conditions.
Token Operators should view Autopilot APRs as a guide to recent performance, not a guarantee of future returns. Regular monitoring of an Autopilot's performance and allocation helps depositors understand whether it remains aligned with their return expectations. Autopilot returns should be viewed over a long time horizon to account for short term APR volatility.
Activating and deactivating Autopilot
Autopilot operates on the same system as all other Allocation. The Autopilot is able to update its allocation every 47 hours on a cooldown. This impacts those entering and exiting Autopilot. Users looking to activate Autopilot will enter a queue (of maximum 47 hours) before more Allocation weight can be added to the Autopilot. This means the user will not begin earning rewards until they have passed the queue.
This same cooldown affects those looking to deactivate. Every 47 hours the Allocation weight can be adjusted and their stake will be deactivated once the queue timing has passed.
Getting started
There are two ways in. To start a new deposit on Autopilot, open the Stake tab, choose Stake AERO, and select an Autopilot option from the list; each Autopilot shows its Stake APR and reward token. Enter the amount of AERO to stake and confirm. To move an existing deposit onto Autopilot, open that deposit from the Dashboard and use its Autopilot tab. The Token Operator's share of the pooled deposit begins earning after passing through the activation queue.
To switch to manual allocation control, deactivate Autopilot and use the Markets tab to allocate directly. After withdrawal, the sAERO is back under the Token Operator's control and can be moved to another Autopilot option, allocated manually, or held.
For integrators and developers, the technical documentation lives in Aero's GitHub repositories.