Auto-Compounding

Auto-compounding is a feature in some cryptocurrency protocols that automatically reinvests the rewards earned from staking or providing liquidity. When a user participates in a liquidity pool or stakes their tokens, they receive rewards in the form of additional tokens.

Instead of manually claiming these rewards and reinvesting them, auto-compounding does this process automatically. This helps users maximize their returns by continuously compounding their rewards without the need for constant monitoring and manual intervention.

By automatically reinvesting rewards, users can potentially earn higher yields over time compared to manually claiming and reinvesting. Auto-compounding simplifies the process of compounding rewards, making it more convenient for users to optimize their earnings in cryptocurrency investments.

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