Passive income with Autonio ($NIOX)

9 min readOct 16, 2021

Before we jump to passive income part, let me just briefly introduce Autonio for context. If you stick with me till the end you'll not only learn valuable info about Autonio, but also find a surprise giveaway!

Autonio is an early stage DAO with a vision to build a prosperous community around algorithmic trading. They aim to achieve this by building tools and solutions to help everyday traders, big or small, to navigate ever changing crypto market with profitability and ease.

Autonio is no newbie to the market. The project started in February 2018 and if you’ve been around in that time, you’d probably agree with me that this was possibly the worst time to start a crypto project. The bubble just bursted, the whole market was crashing really hard and 2 years long bear market started.

Autonio, despite the fact they raised only around $55k, survived this bear market, delivered multiple working products, created valuable connections with highly respected people and sealed partnerships with major players throughout the industry.

To name just some of their partners:

Polygon
Cardano
Crypto.com
Loopring
Singularity NET & Singularity DAO
Elrond
Biconomi
and more..

Now let’s have a look how can Autonio help you generate passive income.

The first three tools are enhancing and further decentralizing liquidity market. Deep and sustainable liquidity is a crucial for any market, including crypto. Liquidity is provided by a group of people called market makers. Historically speaking, market making has been a business for large financial institutions as it needs advanced trading tools and lots of capital.
Market making is a paid service and centralized exchanges (CEXs) pay billions of dollars every year for this. Even when you look at decentralized exchanges (DEXs) such as Uniswap or Sushiswap, there have to be some incentives for people to add liquidity to automated market makers (AMM).
AMMs, while being very popular for their availability and ease of use, do have their limitations, such as flat fees, no stop loss function or impermanent loss.
Liquidity providers (LPs) are most often incentivized in a form of a token they’re adding liquidity to. For example, LPs adding liquidity to XYZ/ETH pair on Uniswap are incentivized in XYZ token. While this seems to be working very well in bullish times, there are various concerns about sustainability of this model. For example, what happens to XYZ/ETH liquidity pool if XYZ project starts running out of their XYZ tokens dedicated to liquidity? Or what if XYZ token price falls dramatically so it’s not attractive for LPs to keep provide liquidity anymore? This is why alternatives are needed.

Autonio is tapping into billions of dollars worth market making service with their Market Maker Bot & NIOX Swarm tools and is offering a more sustainable liquidity solution for decentralized exchanges with their SmartDEX & Smartpools.

Let’s deep dive now.

Market Maker bot

Autonio built a market maker bot that’s available to every crypto user. Basically, the idea is that the bot puts both buy and sell order into orderbook with a spread and refresh frequency of your choice. When both orders are filled, the spread difference is your profit. For example if you put buy and sell orders with 0,5% spread from spot price and both are filled, you have 1% gains (minus exchange fees). The bot trading strategy can be adjusted for both upwards and downwards trending markets. There are some advanced features offered as well such as staggered orders or hanging orders.

Market Maker Bot 1.0 has been live for months and multiple community members are showing very good trading results. The bot can be used on multiple popular CEXs such as Binance, Kucoin, Crypto.com or Ascendex.
Market Maker Bot 2.0 will have brand new UI and many additional features such as at least 5 premium market making strategies, paper trading (for new users to learn) or ability to run the bot in a cloud. Maket bot v2 is expected to go live in Q4 2021.

It is surely worth noting here that Autonio has been working extensively with SingularityNET & SingularityDAO for long time to integrate AI into their market maker to boost performance. They have done lot of research and testing, of which multiple are open to public. Integration of AI is expected Q1-Q2 2022.

NIOX Swarm

Swarm is a liquidity mining protocol and infrastructure for crowdsourced intelligent market making. This is where Autonio is tapping into billions of dollars worth market for market makers.
Basically, the idea is that people running NIOX Market Maker Bot on selected pairs/exchanges are getting paid for doing so.
There are two types of rewards:
1, rewards for generating volume
2, liquidity mining rewards — which are rewards for having buy/sell orders within a certain spread from the spot price (usually up to 1% spread).

This is a win win for everyone — it helps exchanges to thicken their liquidity around the spot price and generate extra volume as well. For market maker bot users it is a great incentive too, because you don’t even need your bot to be profitable in order to be profitable. Just don’t be at loss and earn Swarm rewards.
There is currently an ongoing liquidity mining campaign at Crypto.com where NIOX Maker users are generating millions of dollars volume every week with their bots and receiving rewards for doing so.

For larger market making entities, it is not uncommon that they receive rebates on fees on exchanges where they provide their services. Once Autonio userbase grows bigger I think it will be in a good position to negotiate some sort of this deal as well. That money can go either to stakers or into treasury.

Bellow you can see my results of the latest NIOX Swarm campaign on Crypto.com. Running bots and earning rewards outperformed the market by 11,33% in two weeks.

SmartDEX & Smartpools

SmartDEX v1 has been live for few months on Polygon but the launch of v2 that's scheduled for coming weeks will bring major changes. SmartDEX v2 will have it’s own unique design. It won’t be just another Uniswap fork. It will be an AI powered multi chain hybrid exchange.

The core protocol will be changed to Balancer v2 and will leverage 0x protocol to access liquidity across Polygon and ETH and later other chains too. Additional features will be for example order book, limit orders, trade history or portfolio tracking later on.

SmartDEX will offer both single asset and multi asset pools. It will also offer AI risk adjusted investment pools and strategies where people will be able to add liquidity to different pools based on their risk apetite. For example a pool of ETH/USDC/NIOX with a certain investment strategy can be introduced. AI will be performing trades between three pooled assets based on technical analysis and public sentiment. This is made possible by AI agents trained through a solid back-end infrastructure and fed with thousands of data points gathered from orderbook-based exchange, on-chain data and social media sentiment. The pool can run for a set period of time or until a profit goal is met.

Furthermore, SmartDEX won’t be just an exchange with it’s own liquidity. It will work as a multi chain exchange aggregator, pulling liquidity from other popular decentralized exchanges running on ETH, Polygon, Cardano or Binance chain.

Most of the fees collected on SmartDEX will be proportionally distributed to NIOX stakers.

SmartDEX v2 beta is expected to go live late Q3 2021 or early Q4 2021.

Staking

Before explaining staking, let’s have a look at NIOX token itself first.

NIOX token is a lifeblood of the whole Autonio ecosystem. Primary use cases of the token are subscription model and governance function. In order to access advanced versions/functions of Autonio products a certain amount of NIOX has to be staked by a user. Basic versions will always be free so any user can try it out, but if you want to take full advantage of high performance tools such as AI agents or premium trading strategies and make most of your trading, you have to stake some NIOX. There is a tiered staking structure that you can take a closer look at here. As a staker you get not only access to more advanced Autonio tools. If you stake 150 000 NIOX or more, you get access to the DAO group where we discuss project related matters, create proposals and vote on future decisions.

New era of staking began end of September 2021. As of now, anyone with any amount of NIOX is able to stake their NIOX and receive staking rewards.
Autonio team is expecting the userbase will keep growing over long run and thus a slightly inflationary tokenomics were introduced.
At the beginning, the total supply was 300 000 000 NIOX and every year 15 000 000 NIOX (or 5% at year 1) is minted and proportionally distributed to all stakers. The inflation is capped at 15 000 000 NIOX, so percentage wise the inflation will be declining over time (year 2 = 4,8%, year 3 = 4,55%, year 4 = 4,35%, year 5 = 4,17% …. ).

At the time of writing around 1/3 of all NIOX is staked and APY is around 18%. Now, I know 18% might not sound like much in the world of cryptocurrencies where hundreds or even thousands of APY are fairly common. But keep in mind that high APY projects are most often highly inflationary, diluting supply at massive rate. Autonio inflation is very low and maybe even more importantly, NIOX marketcap is only $9,000,000 at the time of writing.

With multiple working products and major updates that are coming with v2 releases I believe it is fairly easy to imagine marketcap going 5–10x or even more from here. At 5x you’d be getting almost 100% of from your initial investment every year. That’s a whole different story, right?

Autonio Seeds

The highest staking tier (300 000+ NIOX) has an extra perk of being able to invest in promising projects in their early stages. Over the years the team has made many valuable connections across the market and you know connections are important when getting into deals. Furthermore, as a DAO, there is a value we can bring to new projects coming to the market, such as increasing their liquidity via Market Maker/Swarm or by adding them into Smartpools, which potentially gives us another edge to receive allocations in private sales/seeds of promising projects.

Investing in presales is always risky but with solid projects this is where crazy high gains are made. There is no first come first served here, no gas wars and plenty time to do your research and evaluate if you want to invest. Total allocation is split equally among all members who wish to participate (if they all wish full allocation of course).

The first presale we did was SingularityDAO. I’m cannot disclose details of the deal, but I can tell you that this presale alone would have already paid the highest NIOX staking tier + extra profits already and we’re not even fully distributed yet. I can also tell you that there are currently ongoing negotiations with another 5–6 promising projects we might invest in.

To sum up…

I did my best to make this as short but also as comprehensive as possible to explain why I’m confident Autonio will help their users to earn passive income on their money in a sustainable manner over long periods of time. I could go more in depth and introduce their incredibly sound advisors or mention that they already received their first institutional level investment, but I won’t spoil the fun of doing your own research.

At the moment, all current products are somewhat spread around multiple places and don’t have a unified UI, but this will change very soon as well. All products above will be integrated into NIOX Suite, which will be a one-stop place to go to to use any Autonio tool — be it running Market Maker bot and check your Swarm rewards, trade on SmartDex, add liquidity to Smartpools or get more info about your presales and how they perform.

Surprise!

Now, I promised a surprise for those who finished reading all the way here. If you like Autonio and you’d like to help us spread the word and get rewarded, go to Twitter, retweet the post where this article is published and tag @AI_Autonio $NIOX. This will get you into drawing that will happen on on 11.11.2021 at 11:11 CET.
There will be 3 random winners announced, each getting 11 111 $NIOX tokens. It is recommended to follow me on twitter to be sure I can DM you in case you win, but it is not compulsory.