[3] ATS-Pairs: Autostake Pools

Ouronet Native Autostake Mechanism

Ouronet is introducing the ability to create Autostake Pools, their used designation being ATS-Pairs (Autostake Pairs)

What is an Autostake Pool (ATS-Pair)

An Autostake Pool is an asset on Ouronet, similar in concept to a Liquidity Pool but operating under a different set of rules. Its primary function is to offer a so called Autostake functionality.

In a classical staking system, you stake an asset to generate rewards, which must then be collected manually. These rewards can either be spent or restaked to compound earnings. This process can be tedious, requiring frequent reward collection and immediate restaking to maximize returns.

With an Autostake Pool, you stake one or more Reward Tokens (RTs) in the pool and receive a Reward-Bearing Token (RBT) in return. The amount of RBT you hold represents your proportional share of all RTs in the pool. As RTs are added or removed, the value of your RBT fluctuates accordingly.

Simply by holding RBTs, you passively earn profits whenever the Autostake Pool is fueled with additional RTs. No manual collection or restaking of rewards is necessary, making the process seamless and efficient.

ATS-Pair Data stored in 2 distinct Tables

• ATS|Pairs, (defined in the ATS Module), using the {ATS|PropertiesSchema}, holds information pertaining to ATS-Pair Properties

• ATS|Ledger, (defined in the ATS Module), using the {ATS|BalanceSchema} (defined in the ATS Module), stores information pertaining to individual Client ATS Accounts, related to Cold Recovery Data (recover times, amounts and used positions).

ATS-Pair Index

The most important metric of an ATS-Pair is the ATS-Pair Index, which represents the value of the Reward-Bearing Token (RBT) in terms of Reward Tokens (RTs). For example, if an Autostake Pool contains 200 RT1, 200 RT2, and 400 RT3, while its total RBT supply is 320, the ATS-Pair Index is calculated as:

(200+200+400)÷320=2.5

An Index of 2.5 means that a single RBT is worth 2.5 RTs in total, specifically 0.625 RT1, 0.625 RT2, and 1.25 RT3, summing up to 2.5 RTs.

Since this example includes multiple RTs within an ATS-Pair, it is important to note that multiple RTs should be used when their values are similar. While there is no technical limitation on which tokens can serve as RTs, choosing assets with similar value ensures balanced distribution and efficient staking.

Syphoning

It is important to note that the Index of an ATS-Pair can fluctuate in both directions. It increases when RTs are added to the ATS-Pair through Fuelling and decreases when RTs are removed via Syphoning.

The ATS-Pair Owner has the option to enable Syphoning if a mechanism is required to withdraw RTs. This can be configured by setting a minimum Index Limit, which defines how low the Index can go when RTs are removed from the pool. Once the Index reaches this limit, no further Syphoning is permitted.

ATS-Pair RT(s)

When an ATS-Pair is issued, it is initially created with 1 RT and 1 RBT, both being DPTF Tokens. The ATS-Pair Owner has the ability to introduce additional RTs, thereby configuring an Autostake Pool with multiple RTs.

Once multiple RTs are set up, the owner can fuel the ATS-Pair with these secondary RTs. The existing RBT supply will then represent the value of all RTs in the pool. When RBT is recovered, it returns all RTs according to their existing ratio.

The Token Owner can also remove RTs that were added after the ATS-Pair was issued. However, the principal RT that the ATS-Pair was initially created with cannot be removed—only secondary RTs that were added later can be removed.

If there are clients waiting to collect secondary RTs, the required secondary RT to be removed must be replaced with the principal RT. When the ATS-Pair Owner initiates the removal of secondary RTs, the system automatically computes how much principal RT is needed to replace the removed secondary RT. The system then transfers the required amount of principal RT from the ATS-Pair Owner to the pool.

For example, if an ATS-Pair contains two RTs (RT1 and RT2), and Alice is on track to collect 100 RT1 and 20 RT2, the ATS-Pair Owner must supply 20 RT1 to replace the 20 RT2 being removed, when removing the RT2 from the ATS-Pair. Once the transaction is initiated, 20 RT1 will automatically be added to the pool in a single operation, and Alice will collect 120 RT1 instead of a mix of RT1 and RT2.

Since the process of removing RTs is constructed this way, equal-value RTs should be used when adding additional RTs to the Autostake Pair. Otherwise, there might be undervalue losses or gains if unequal-value RTs are used. This is because the system treats all RTs as being of equal value, without any mechanism to adjust for differences in their individual worth.

RT(s) Recovery from the RBT

There are two mechanisms by which RT(s) can be recovered from the RBT: Cold Recovery and Hot Recovery. By default, when an ATS-Pair is issued, only Cold Recovery can be enabled, while enabling Hot Recovery requires additional steps.

An ATS-Pair can have both recovery mechanisms enabled, only one of them active, or both disabled. If both are disabled, recovery is considered paused until one of the mechanisms is reactivated.