Compounding Vaults

Compounding vaults automatically reinvest accrued yields back into the principal at regular intervals, creating a compound growth effect. This structure maximizes returns over time by ensuring that earned interest begins generating its own returns.

How They Work

• Daily compounding — Yields are calculated and reinvested on a daily basis, maximizing the compounding effect over the investment term.
• Automatic reinvestment — There is no action required from the investor. The vault handles all yield calculations and reinvestment automatically.
• Growing principal — As yields compound, the effective principal grows over time, leading to progressively larger yield calculations in subsequent periods.
• Defined APY range — The vault specifies a target APY range, with the actual compound rate determined by the frequency and consistency of reinvestment.

Best Suited For

Investors with a longer time horizon who want to maximize total returns through the power of compounding. These vaults are ideal for a "set and forget" approach where capital appreciation is the primary goal.