Compounders
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, read our comprehensive blog post.
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.
Last updated