> For the complete documentation index, see [llms.txt](https://docs.feeder.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.feeder.finance/products-and-services/yield-optimizer/autostaking/compound.md). # Auto-Compounding ![AutoStaking: Compound Strategy](/files/-MgL54HOZesXVlCtukjF) **Auto-compounding strategies help an investor automatically earn optimized yields through a target platform strategy.** How does it work? The users' funds are first deposited into a target vault or staking pool. The target platform utilizes yield-optimizing strategies to enhance returns which increases the value of deposits. They also reward depositors with native tokens, which Feeder Finance then auto-compounds again for additional returns. ### **Strategy Benefits and Risks** No investment, whether in DeFi or the physical world, is truly *risk-free*. Users of **Compound** benefit from convenience and automation by removing the manual aspect of compounding rewards thanks to target platform auto-compounding. Staking pools and/or vaults typically mint rewards to attract TVL to their platform. However, most do not automatically compound their rewards because they encourage users to keep them and become long-term holders. Feeder Finance appreciates that, and users who wish to be long-term holders should not auto-compound. Others that look for higher APYs, however, would benefit greatly from compounding. APYs coming from platform rewards harvesting typically experience wild swings due to their direct linkage with the price of reward tokens. In other words, as target platform tokens rise, so does APY, and vice versa. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.feeder.finance/products-and-services/yield-optimizer/autostaking/compound.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.