Auto-compounding

By default, all Zyfai Agents auto-compound yield. When reward tokens accumulate and reach a $2 threshold, they are automatically swapped to USDC and added back to your active position. This increases your earning base over time, allowing yield to compound on yield without any manual action.

Auto-compounding can be turned off in your Agent settings. When disabled, reward tokens are held as-is rather than converted to USDC, allowing you to accumulate the underlying reward tokens directly. This may be useful if you want exposure to a specific reward token rather than immediate USDC conversion.

However, keeping auto-compounding enabled is recommended. Reinvesting rewards into your position increases capital efficiency and produces higher returns over time. The longer the compounding period, the more significant the difference becomes.