Portfolio-Level Compounding
How to compound across multiple positions using auto-compounding and manual reinvestment.
Key Takeaways
- Auto-compounding reinvests matching-token fees during each rebalance automatically
- Manual compounding: harvest fees and open new positions or withdraw and redeposit larger
- Combine both methods across a portfolio for maximum growth
Two Compounding Methods
MaxFi gives you two ways to compound. Use both for maximum growth.
Auto-Compounding (Set and Forget)
Enable Fee Compounding when you deposit. During each rebalance, matching-token fees are automatically reinvested into your new position. Non-matching fees go to your wallet.
This happens automatically. No action needed from you.
Manual Compounding (Your Choice)
For the fees and rewards that land in your wallet, you have two options:
Open new positions. Take your harvested fees and deposit them into new positions. Multiple positions earning fees means faster portfolio growth.
Withdraw and redeposit. Withdraw an entire position. Redeposit with the original capital plus all earnings. One larger position.
Portfolio Compounding Strategy
When you have multiple positions, compound them as a portfolio.
Option A: Same-pool reinvestment. Harvest each pool. Open new positions in the same pools. Simple. Each grows independently.
Option B: Best-pool reinvestment. Harvest all pools. Reinvest into whichever pool earns the most right now. Concentrates growth where it matters.
Option C: Diversification. Use harvested fees to enter pools you do not have yet. Spreads risk across more assets.
Example Portfolio
| Pool | Size | Monthly Fees |
|---|---|---|
| WETH/USDC 0.30% | $5,000 | $200 |
| cbBTC/USDC 0.05% | $3,000 | $60 |
| Stablecoin | $2,000 | $20 |
Total monthly fees: $280. Auto-compounding handles matching-token fees during rebalances. The rest ($140+) lands in your wallet each month.
Reinvest that $140+ every month into new positions. After 12 months, you have added $1,680+ in reinvested fees. Those fees also earn fees. Compounding on top of compounding.
Building a Routine
Every month:
- Check maxfi.tech/positions for accumulated fees
- Harvest fees from all positions
- Open new positions with the harvested tokens (or withdraw and redeposit larger)
- Done in a few minutes
Auto-compounding works between your manual sessions. The combination maximizes growth.
What You Learned
- Auto-compounding reinvests matching-token fees during each rebalance automatically
- Manual compounding: harvest fees and open new positions or withdraw and redeposit larger
- Combine both methods across a portfolio for maximum growth