> For the complete documentation index, see [llms.txt](https://whalehub-1.gitbook.io/whalehub/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whalehub-1.gitbook.io/whalehub/vaults/auto-compounding.md).

# Auto-Compounding

Whalehub's backend compounds vault rewards automatically, so a depositor never claims, swaps, or re-deposits anything by hand.

## Cadence

| Vault             | Compounds per day | Driven by                                    |
| ----------------- | ----------------: | -------------------------------------------- |
| BLUB-AQUA         |                 4 | Stream B of the bribe harvest, every 6 hours |
| Other vault pools |                 6 | `claim_and_compound`, every 4 hours          |

Compounding returns are effectively flat above roughly 4 cycles a day — the gap between 6× and 24× daily is under 0.1% APY at any realistic rate — so the cadence is set by gas cost, not by yield.

## How it works

### BLUB-AQUA

This pool has been de-whitelisted by Aquarius since mid-2026 and emits no AQUA of its own, so its growth comes from the bribe harvest instead.

```mermaid
sequenceDiagram
    participant Backend
    participant Contract
    participant Aquarius Pool

    Note over Backend: Every 6 hours, per bribe batch
    Backend->>Backend: Take Stream B — 30% of the harvest
    Backend->>Backend: Quote calc_token_amount → min_lp_out
    Backend->>Contract: admin_compound_deposit(single-AQUA class, 100%)
    Contract->>Aquarius Pool: Deposit AQUA single-sided
    Note over Contract: total_lp_tokens rises, no shares minted
    Note over Contract: Every depositor in that class grows pro-rata
```

The tranche is deposited as **AQUA only**, never half-swapped into BLUB — AQUA is the scarce leg of the pool, so adding it mints more LP per unit of value and pushes the pool toward par. Deposits carry a live `min_lp_out` floor so they cannot be sandwiched.

### Other vault pools

```mermaid
sequenceDiagram
    participant Backend
    participant Contract
    participant DEX
    participant Aquarius Pool

    Note over Backend: Every 4 hours
    Backend->>Contract: claim_and_compound(pool_id)
    Contract->>Aquarius Pool: Claim AQUA emissions
    Contract->>Contract: vault_fee_bps (15%) → treasury
    Contract->>Backend: Remainder → manager wallet
    Backend->>DEX: Swap half of the AQUA to the second pool token
    Backend->>Contract: admin_compound_deposit(pool_id, token_a, token_b)
    Contract->>Aquarius Pool: Deposit both tokens
    Note over Contract: LP shares increase for all depositors in the pool
```

## Reward classes in the BLUB-AQUA vault

Stream B is not shared evenly. Depositors who entered with **AQUA only** take 70% of it; depositors who entered with **both tokens** share the remaining 30%. The two classes are separate buckets over the same Aquarius pool, so each one's LP grows independently.

Single-sided **BLUB** deposits are disabled: they push the pool further off ratio, which is the opposite of what it needs.

## Compound effect

| Base Pool APY | Compounded APY | Extra yield |
| ------------- | -------------- | ----------- |
| 10%           | 10.5%          | +0.5%       |
| 25%           | 28.4%          | +3.4%       |
| 50%           | 64.8%          | +14.8%      |
| 100%          | 171.5%         | +71.5%      |

## Tracking your gains

The vault interface shows:

* **Your LP tokens** — current position size
* **Deposit amount** — what you originally put in
* **Compound gains** — how much the position has grown from auto-compounding