Auto-Compounding

What is Auto-Compounding?

Auto-Compounding addresses user requests for a simple way to reinvest their weekly rewards into veLISTA, rather than manually claiming and selling LISTA tokens.

By enabling Auto-Compound, users can have their weekly rewards automatically locked into veLISTA, allowing them to benefit from compound interest over time.

Supported Features for Auto-Compounding

Currently, in Phase 1, the Auto-Compound feature only supports veLISTA weekly rewards. In future phases, Lista DAO will expand this to include LP Emission rewards, giving users even more flexibility in automating their reward strategies.

Auto-Compounding Fees

The Auto-Compounding service is simple to use, but there are a few conditions:

• Minimum Compound Amount: $5. If the rewards are less than $5, they will not be auto-compounded.

• Fee: A 3% fee will be charged for each auto-compound transaction. This fee may be adjusted in the future based on business needs.

• Maximum Fee: There is a cap on the maximum fee to ensure users are not charged more than necessary.

By default, Auto-Compounding is enabled for all users. However, users can easily disable it if they prefer to manually manage their rewards.

How Does Auto-Compounding Work?

Every Tuesday, Lista DAO will automatically process the auto-compounding of rewards. The system prioritizes larger rewards first, ensuring that all eligible rewards are locked into veLISTA for maximum compounding growth.