> ## Documentation Index
> Fetch the complete documentation index at: https://zyfai.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# 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 / BTC 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 / EURC / ETH / BTC, 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 / EURC / ETH / BTC 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.

<img src="https://mintcdn.com/zyfai/p7wzrUqxssDDJN81/img/product/compounding.png?fit=max&auto=format&n=p7wzrUqxssDDJN81&q=85&s=10d1fc7f9850baee445309d00b1510a7" alt="compounding" width="4800" height="2512" data-path="img/product/compounding.png" />
