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  1. Protocol
  2. Asset Managers

Compounders

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Last updated 3 months ago

Compounders address a critical inefficiency in concentrated liquidity protocols, where yield from liquidity positions is not automatically reinvested. These asset managers transform linear returns into exponential growth by automatically compounding fees.

For a deep dive into our Compounders' mathematical and technical intricacies, .

Properties

The compounder embodies the essence of true DeFi:

  • It is immutable.

  • It is 100% permissionless, with the compounder having no special privileges or admin roles. Anyone can initiate a compound, as long as all the contract-defined conditions are met.

  • It is stateless, the contract has no storage variables (except a reentrancy lock that is reset at the end of each transaction), but still operates for any liquidity positions in an Arcadia Account.

  • The contract relies on economic incentives, with the initiator of the compound earning a small reward when compounding the fees of a position.

Fees

The compounders charge a flat fee of 1% of the fees being compounded.

read our comprehensive blog post