Automatically reinvesting earned DeFi yields back into the principal to generate compound returns. Vault protocols like Yearn and Beefy handle compounding automatically, saving gas costs.
Automatically reinvesting earned DeFi yields back into the principal to generate compound returns.
Vault protocols like Yearn and Beefy handle compounding automatically, saving gas costs.
This is a key building block of decentralized finance. Understanding it helps you navigate DeFi protocols safely, evaluate yield opportunities, and avoid common pitfalls.