Autocompound

Autocompound module

The Autocompound module allows users to automatically swap and reinvest fees that are sitting idle in the Uniswap v3 position.

When in range, Uniswap v3 positions collect fees.

These fees are not further earning trading fees as they are in a separate account. This module periodically reinvests these fees, sitting in the Uniswap v3 position. This operation is maintained by external bots (keepers) who frequently check whether fees need to be reinvested.

Advanced users can customize the Fee/Liquidity threshold parameters, the threshold after which Autocompound is triggered and refers to the amount of fees over position liquidity. For example, setting the threshold to 2% implies that Autocompound is triggered when accrued fees value exceeds 2% of the liquidity in the Uniswap position.

A numeric example follows:

This calculation was made by using 12 periods (can be weeks, days, or even years) with a $10.000 starting cap.

In the "with Autocompund" scenario, fees are reinvested every period. While in the "without Autocompound" scenario, fees are not reinvested.

With Autocompound	Without Autocompound	Additional Yield
5,00%	4,89%	0,11%
10,00%	9,57%	0,43%
15,00%	14,06%	0,94%
20,00%	18,37%	1,63%
30,0%	26,50%	3,5%
40,0%	34,1%	5,9%
60,00%	47,93%	12,07%