Auto-Compound
Automatically reinvesting earned rewards back into a position to maximize compound interest effects.
In-Depth Explanation
Manual compounding requires claiming rewards and re-depositing—gas-intensive and time-consuming. Auto-compounding vaults do this automatically, turning APR into higher effective APY. The more frequently rewards compound, the greater the APY boost. Auto-compounders typically charge performance fees but save users significant gas and effort.
Related Terms
More in Yield
View all →Mercenary Capital
Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.
Annual Percentage Yield
APYThe annualized return on an investment accounting for compound interest.
Annual Percentage Rate
APRThe annualized return on an investment without accounting for compounding.
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.