# Introduction ## Why Develop Autopools? **Providing liquidity in DeFi, particularly to correlated trading pairs such as ETH LSTs/LRTs and stablecoins on decentralized exchanges (DEXs), or to lending markets like AAVE, Fluid, and Morpho, can be an extremely efficient onchain way to earn additional yield on one's assets. Despite this, it comes with many complexities to achieve that efficiency.** \ \ Autopools were developed to address the many challenges liquidity providers (LPs) face when optimizing for best performance. No protocol currently offers fully autonomous, transparent and sophisticated rebalance solution focused solely on liquidity provision.\ \ This dedicated approach offers great value not only to LPs, but also to a wide range of other ecosystem participants, making providing liquidity accessible. ## The Status Quo for LPs **Liquidity providers face a highly complex decision-making process when seeking to optimally rebalance their LP positions.** It requires an LP to account for a complex set of factors, including but not limited to: * *variance of yields and their composition;* * *different fee and reward systems;* * *offsetting various costs such as gas, slippage, and trading fees;* * *different AMM models.* Differentiating between AMM models warrants highlighting, as its complexity is an often neglected core challenge of manual liquidity provision. \ \ Additional factors complicating the process include the significant amount of time LPs must spend researching opportunities and interacting with multiple protocols, making the process time-consuming and cumbersome. \ \ Even without considering these problems, the high costs of rebalancing and compounding often lead to underperformance and can prevent LPs from participating altogether. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.auto.finance/auto-pools-protocol/introduction.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.