DeFi & Yield

What is auto-compounding in DeFi vaults?

Auto-compounding in DeFi vaults is a process where a smart contract automatically harvests your earned rewards and reinvests them into the same position, so future returns are calculated on a growing base. For example, a vault holding a yield-bearing position might claim and redeposit rewards several times a day rather than leaving you to do it manually. This saves transaction effort but adds smart-contract dependency, and yields fluctuate with no guarantee. Qatobit applies a comparable discipline through monthly rebalancing of its curated indices, governed by documented methodology rather than automated yield loops. Read the approach.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.