AUTO is a yield token on Hastra that gives you access to structured consumer auto loan yield through the Democratized Prime decentralized lending marketplace. It is the second asset in the Hastra product suite, following PRIME (home equity).
When you stake wYLDS into the Hastra AUTO protocol, AUTO is minted, and simultaneously a programmatic instruction allows capital to be lent to a pool of consumer auto loans through Democratized Prime. You earn exposure to the yield from the interest those borrowers pay on their loans in the form of rewards. The rate is set by the same continuous utilization function that powers PRIME, based on how much of the pool is being borrowed; no one at Figure or Hastra sets it manually.
AUTO targets a yield of approximately up to ~9%*. This rate is not fixed or guaranteed. It fluctuates based on supply and demand in the Democratized Prime marketplace, just like PRIME.
This is real yield from real borrowers making real car payments, not token emissions or liquidity mining rewards.
Where do the auto loans come from?
The auto loans in the pool are originated by Agora Data, an established auto finance company that acquires and originates consumer auto loans in the near-prime segment. Agora has an existing $100M warehouse facility with Capital One and a track record of public securitizations.
The process flows from origination to your wallet in four stages:
- Origination: Agora Data originates near-prime auto loans through its AI-powered underwriting framework, serving car dealerships across the U.S.
- Tokenization in Figure Connect and Structuring via Figure Forge: Agora’s loans are tokenized and added to Figure’s on-chain credit marketplace, Figure Connect, which utilizes Digital Asset Registry Technologies (DART), Figure’s on-chain digital lien and e-note registry. Once the loans are on Figure Connect and represented on the Provenance Blockchain, the Figure Forge smart contract is used to transform these loans into standardized loan participation tokens. Auto loans vary widely in borrower credit, loan size, and terms - Forge pools similar loans together and issues fungible tokens that represent pro rata claims on the underlying cash flows. This makes them usable as DeFi collateral.
- Democratized Prime: The participation tokens enter Figure's Democratized Prime marketplace on Provenance, where lenders (AUTO holders) provide warehouse funding. Your wYLDS deposits fuel this lending pool through a programmatic instruction that is delivered when wYLDS is staked into the Hastra Auto protocol, instructing the YLDS backing wYLDS to be lent in the Auto Pool.
- Hastra Distribution: Yield from Democratized Prime flows through to Hastra and is distributed to AUTO token holders (minus the applicable Hastra Platform fee of 50bps) on Solana, with Ethereum mainnet and additional chains to follow.
Agora handles origination, underwriting, and servicing. Figure handles structuring, credit enhancement, and capital markets infrastructure. Hastra handles DeFi distribution.
This is an important distinction from PRIME. With PRIME, Figure originates the underlying HELOCs directly. With AUTO, Figure's role expands, it sources and diligences a third-party originator, then structures the pool so the risk and return profile works for DeFi depositors. This structuring layer is called Figure Forge, which includes the smart contract that creates composible Participation Interest tokens (via a Master Participation Agreement) from the underlying tokenized whole loans.
How do I get AUTO?
- Get wYLDS first: You need wYLDS to participate. You can read how to acquire wYLDS here.
- Visit Hastra's Dashboard: Connect your Phantom or compatible Solana wallet.
- Head to the Earn tab: Select AUTO from the available yield products in the Stake section.
- Stake wYLDS: Your wYLDS fund the auto loan lending pool via Democratized Prime.
- Start earning: Begin accruing yield from real auto loan interest payments while your wYLDS is staked.
- Exit anytime: No lock-up period. Withdraw anytime by unstaking.
How is AUTO different from PRIME?
AUTO | PRIME | |
Yield source | Consumer auto loan interest | HELOC lending interest |
Target yield | ~9%* | ~7%* |
Originator | Agora Data (third-party) | Figure Technologies (first-party) |
Figure's role | Structurer + diligence + marketplace | Originator + marketplace |
Collateral type | Motor vehicles (new and used) | Residential real estate |
Settlement | Continuous (utilization-based) | Continuous (utilization-based) |
Liquidity | Real-time | Real-time |
Lock-up | None | None |
Token chain | Solana, Ethereum to follow | Solana, Ethereum |
Both tokens share the same infrastructure backbone: origination → tokenization via Figure Connect and structuring via Figure Forge on Provenance → Democratized Prime → DeFi distribution through Hastra. They give you exposure to different asset classes with distinct risk and return profiles.
The key difference: PRIME's risk story is about the quality of Figure's own origination. AUTO's risk story is about the quality of Figure's structuring. The credit enhancements are designed to abstract the underlying credit risk so depositors do not need to evaluate individual auto borrowers.
AUTO targets a higher yield than PRIME because auto loans carry higher credit risk than home equity. The structural protections are correspondingly more layered.
What are the risks?
Credit risk. The underlying loans are near-prime and subprime consumer auto credit. The structural protections described above are designed to absorb those losses, but they do not eliminate credit risk entirely.
Vehicle depreciation. Unlike real estate, cars lose value over time. In a default scenario, recovery depends on the vehicle's residual value. The advance rate cap (87 percent), insurance requirements, first-priority lien position, and the 60/90-day buyout mechanism are designed to limit this exposure.
Platform and smart contract risk. AUTO uses the same Democratized Prime platform and smart contract infrastructure as PRIME, which has been in production since November 2025. Both AUTO and PRIME have been audited. Always verify you are interacting with official contracts.
Yield variability. The target yield of approximately ~9%* is not fixed. It is determined continuously by the utilization function and will move based on the balance of lender supply and borrower demand.
Regulatory risk. Consumer auto lending is subject to federal and state regulation. Changes in regulations affecting tokenized RWAs, auto finance, or cross-chain operations could impact the product.
What protections sit between me and credit losses?
Figure structures several layers of protection into the AUTO pool. You do not need to be an expert in near-prime auto lending to hold AUTO, that is the point of the structuring layer. But you should understand what is in place.
The headline number: the underlying auto loans generate approximately 20 percent in net coupon, and AUTO holders are paid approximately 9 percent*. That is roughly 2.4 times as much cash flow as needed to pay the yield. The pool would need to see losses over five times higher than expected before your yield is impaired.
That overcollateralization is the primary cushion, but it is not the only one. Here is what else sits between you and credit losses:
Reserve account. A sinking fund that builds to 2.5 percent of outstanding principal over time. It absorbs realized credit losses before any loss reaches token holders.
Figure’s $25M commitment. Figure commits seed capital to the auto loan trust as first-loss protection. Figure’s money is at risk alongside yours.
Advance rate mechanics. You are never exposed dollar-for-dollar to any loan. Current loans are advanced at 87 cents on the dollar. At 61–90 days delinquent, that drops automatically to 43.5 cents. At 91+ days, it goes to zero — effectively removing the loan from the borrowing base.
60/90-day collateral buyout. Delinquent loans are obligated to be bought out of the pool at defined thresholds, so the performing composition is actively managed rather than left to deteriorate.
Originator buyback. Agora must repurchase any loan that breaches its representations or eligibility criteria, at full principal plus accrued interest.
Full recourse and guarantee. The pool retains full recourse to Agora, and Agora’s parent company provides a limited guarantee covering bad acts, servicing, and purchase obligations.
Bankruptcy remoteness. The auto loans sit in a Delaware statutory trust pledged under a Master Repurchase Agreement (MRA) between the originator and the bankruptcy remote-trust. This structure is designed to isolate the loan assets from the credit risk of any single party, including Figure. If the originator defaults under the MRA, the loans are sold in a true sale to the trust, which has an independent trust administator and liquidiaton, whose only non-discretionary powers are to sell the assets and remit the proceeds back to the Democratized Prime lenders in a default scenario.
Frequently Asked Questions
Is AUTO the same as wYLDS or PRIME?
Is AUTO the same as buying auto loans directly?
What happens if a lot of borrowers default at once?
Can I withdraw at any time?
How is this different from tokenized credit funds?
Can I transfer AUTO to other wallets?
Can I use AUTO as DeFi collateral?
Who is Agora Data?
Will there be more asset classes after AUTO?
References to Democratized Prime, Hastra, PRIME, Figure Forge, or other products or protocols relate to conceptual features of these systems and may not reflect final product design, availability, eligibility, or performance. Any yields, rates, lending activity, or liquidity referenced are illustrative and not guarantees of future returns. Digital asset lending and participation in on-chain protocols involve significant risks, including loss of principal, volatility in digital asset prices, smart-contract vulnerabilities, auction-driven rate changes, and potential illiquidity. Access to real-world assets (RWAs) or credit exposures through digital tokens may be limited by regulatory, technical, or operational constraints and may not be available in all jurisdictions.
Productive debt, on-chain credit, and composable yield mechanisms depend on third-party infrastructure, including blockchain networks, oracles, and liquidity providers, each of which may fail, become unavailable, or perform in unexpected ways. Historical data, including the size of loan originations or descriptions of credit quality, do not predict or assure future performance. Nothing herein should be interpreted as investment advice, legal advice, or a recommendation to engage in any lending, staking, or credit-related activity. Users should conduct their own due diligence and consult their advisors before engaging with any digital asset, lending protocol, or RWA-related product.
Rates or returns associated with Democratized Prime are not fixed or guaranteed and may vary based on pool composition, borrower performance, utilization, and prevailing market conditions. Terms and conditions available at figuremarkets.com/disclosures.
Democratized Prime is a decentralized protocol integration (see Decentralized Protocol Integrations Terms of Serivce) made available through Figure Markets and involves substantial market, liquidity, collateral, blockchain, smart contract, and operational risks, including the potential loss of principal or collateral. More information available, including the Terms of Service of the Decentralized Protocol Integration, at figuremarkets.com/disclosures
This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting with financial professionals before making investment decisions.
*The APY displayed is an estimate based on the last queried rate from the Democratized Prime pool. It is a market rate based on supply and demand within the protocol and is updated in the Hastra UI every 5 minutes. Prior rates do not guarantee future rates.