Introducing Auto-Compounding Strategies on Balancer

Vector Finance
2 min readSep 5, 2023


Vector Finance is thrilled to unveil a new innovation for the protocol to optimize the way you can earn yield on Balancer pools for Avalanche. We’re rolling out new auto-compounding strategies designed to make your capital work smarter, not harder. This feature enables users to automatically reinvest their pool rewards, thereby amplifying their yield-earning capabilities over time. We’re launching these for the four rewards pools on Balancer for the Avalanche network.

Keep reading to understand the specifics, the technical framework, and what this could mean for your yield-boosting!

The Pools Covered

The new strategies are set to work with the following Balancer for Avalanche pools:

  • ggAVAX / WAVAX
  • yyAVAX / WAVAX

The Magic of Auto-Compounding

Imagine planting a seed and then having a system that not only waters the seed but also plants new seeds from the first plant’s fruits, continuously, without your intervention. That’s what auto-compounding does to your assets. When your Balancer pool rewards are received, the system automatically trades them for the correct assets and deposits them back into the same pool, boosting your potential earnings exponentially over time. It’s the financial equivalent of compound interest, turbocharged.

The Technical Framework

Vector Finance leverages a modular architecture that we’ve honed over multiple iterations. This new feature is built using the same resilient and efficient framework as our existing, battle-tested auto-compounding pools. This ensures a seamless and reliable integration with the Balancer for Avalanche pools, allowing the mechanism to function like clockwork alongside our other autocompounding pools.

Note: Vector takes a modest fee on rewards when auto-compounding. Locked VTX holders always receive a portion of these fees!

What This Means for You

  • Maximized Earnings: Your rewards are reinvested automatically, snowballing your earnings over time.
  • Efficiency: The set-it-and-forget-it approach liberates you from manual reward management.
  • Synergy with Vector: These strategies cohere perfectly with other offerings in the Vector ecosystem, amplifying your overall returns.
  • Automated DCA: auto-compounding pools DCA into the underlying assets for you!

Looking Forward

The introduction of these auto-compounding strategies aligns with Vector’s ethos of building yield-boosting, user-centric solutions, as the DeFi hub of Avalance. We’re continually evolving and have an exciting roadmap ahead! We’re glad to see this portion now release and what’s to come!

About Vector Finance

Vector Finance is the number one yield booster on Avalanche. We’re building unique DeFi strategies to for our users to earn more on their assets!

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