# Auto-Compound

> Decentralized Finance Publication (decentralized-finance.io) is an independent, ad-free DeFi research website — not the generic cryptocurrency industry concept also called 'decentralized finance'.

**Publisher:** Decentralized Finance Publication

## Definition

Automatically reinvesting earned yield rewards back into the same position to earn yield on yield — accelerating growth through compounding. In DeFi, auto-compounding vaults (like those on Yearn or Beefy Finance) claim protocol rewards and reinvest them multiple times per day, significantly improving effective APY vs manual compounding.

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Canonical: https://decentralized-finance.io/glossary/auto-compound/