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 / ETH 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 / ETH, 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 / ETH 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.