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Automated Compounding Bot
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”.
While the marvellous effect of compounding is proven in traditional financial world, it becomes even more crucial and effective in the crypto world thanks to the low transaction fee and speedy turnover cycle.
Our Automated Compounding Bot help yield farmers in two ways:
- 1.Auto harvest reward and compound your position - Our bot automatically converted the reward to more staking shares upon rewards confirmation, this action continuously amplify your yield farming position to chase for compounded yield return.
- 2.Save the gas cost with economy of scale - All the positions are gathered together to a vault, any actions altering the vault will lead to the auto-compound effects.
The difference of yield farming with and without auto-compounding effect could be very significant. Assuming a farming position (without leverage) who is accumulating 5% trading fee (APR) and 15% yield farming reward (APR) and price of yield farming reward token keep unchanged, the performance with or without daily auto-compounding could be illustrated as follows:
Please note that the above performance curve is only generated under daily compounding, in the real DeFi world it would be a lot more frequent.