Flux Protocol

V2 - Auto-Compounding

Auto-compounding increases the APY, and every LP’s smart contract auto-compounding frequency is set to every 24 hours. The auto-compounding transaction fees are covers by the liquidity pool and distributed to the liquidity providers according to their percentage of the total pool.

Auto-compounding logic

  • Transfer a user’s generated revenue into the smart contract (excluding FLUX Rewards);
  • Exchange into the corresponding LP on a DEX;
  • Flux V2 will compound automatically according to the user’s leverage setting.