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# 12.4 Auto-Compound Feature
Compounding is the process of reinvesting your earnings to generate earnings on your earnings - the 'snowball effect' of finance. LiquidX offers an auto-compound option where your yield is automatically restaked, generating additional yield without any manual action from you.
* Manual claim: Withdraw your yield at any time
* Auto-compound: Yield is automatically restaked - earns an additional 3% boost on effective APY
* Handled entirely by smart contract - no manual steps required
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