> For the complete documentation index, see [llms.txt](https://yieldboxio.gitbook.io/yieldbox/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yieldboxio.gitbook.io/yieldbox/the-basic-fundamentals/how-does-the-autostake-works.md).

# How does the Autostake Works?

YieldBox enables its holders to extensively compound their investment and returns, as the protocol auto rewards its holders with **2.6%** a day with the compounding APY of **1,171,519.7%** is rewarded every 5 minutes, 288 times daily and 7% BUSD reflection every 60 minutes, 24 times a day.

Seeing the size of this APY, one may wonder — how is such APY attainable?

YieldBox leverages a number of revenue-generating mechanisms:

### **1. The protocol will use Defi 3.0 Multichain Farming to increase the Treasury Fund exponentially at a rate of \~100% a year or more to better support $YBX price floor.**

Unlike Titano and other competitors which has a static LIT fund that does not yield profit, YieldBox uses the treasury fund to farm stable tokens through multichain farming. The Treasury funds are bridged to other EVM-compatible blockchains - like Avalanche, Fantom, Solana, Metis, Polygon, etc. to farm at the highest APY farms and the profit is then brought back to YBX and returned to the TF. 

YieldBox seeks yield-generating opportunities across different protocols and chains. This means that the YBX funds does not remains entirely on the BSC network, the money from the Treasury will be bridged to many other networks such as Fantom, Avalanche, Ethereum and any emerging blockchains which may have higher profit yield farms and substantial APYs. This strategy enabling YBX to deliver at least **\~100% additional returns a year to better support $YBX price floor. That's why we are confident that we can support higher APY than other projects while still being sustainable  long term.**

### **2. BNB Launchpad Earning**

The Binance Launchpad Subscription Format **allows BNB holders to commit an amount of BNB towards a Binance Fan Token sale**. The final allocation of the new token is determined by the ratio of their committed BNB against the total committed BNB by all participating users. 

A part of BNB in Treasury Fund will be transferred transparently to the Binance wallet of YieldBox and keep that until the launchpad ends to receive the new tokens.

**One major advantage to launchpads is that they usually yield massive gains for investors**

The more BNB we have, the more new tokens we get. By selling new tokens, YieldBox Team expected to generate 200% returns a year from Binance Launchpad (or launchpool) to support the APY in long term. This strategy is risk-free but very high reward.

### **3. Protocol-owned Liquidity**

Employing the use of protocol owned liquidity (POL) in combination with the underlying mechanics of YBX is a key distinction that enables YieldBox Finance to generate an additional revenue stream\
 (Pancakeswap give 0.25% of each transaction for Liquidity providers)  allowing it to deliver additional added value and increased APY to its token holders.

### **4. Slippage: 13% Entry and 15% Exit Tax**

The protocol takes a portion of the trading fees (buying and selling) and utilizes these to further sustain and back the protocol and its liquidity.

### **5.** Automatic Mega Burn

Every day, 0.2-0.4% of the total circulating supply will be burned. This percentage will evolve over the time based on our Automatic Mega Burn algorithm. The burn calculation will be updated daily according to the number of holders and the tokens held by each.

With our Mega burn program, 0.2-0.4% of total circulating supply is automatically burned daily, so YBX's total supply will constantly be deflating against your balance, while your balance is constantly increasing against YBX's total supply. This built-in mechanism creates a true supply/demand metric to the YBX token as it becomes ever scarcer against your balance with time.

In simple words, if you just hold YBX, your share of total market cap will be ever-increasing. Even if market cap remains stable (no new investors), the USD value of tokens in your wallet will still be growing. If the market cap raises by having new investors, your USD value of tokens will grow even more thanks to your share/total supply increasing continuously every day.