New Feature: Compound Fees button
Unpilot has added a “Compound Fees” option. Find out why we added this feature and when you might want to use it.
Background
When providing liquidity directly on a DEX such as Uniswap v3, earned fees sit idle in a separate pot until the user makes a transaction to claim them and then re-add them to their active position. When using Unipilot, earned fees are added back into active liquidity at regular intervals by the protocol so that users can benefit from compounding. This transaction to compound fees occurs whenever a vault is rebalanced or anyone exits that vault.
Compound Fees option
We have now added the ability for users to click to compound their earned fees back into active liquidity at their discretion. This can be beneficial if a vault has not been rebalanced or had a withdrawal in some time.
A user can trigger a compound fees transaction in any vault where they have liquidity, and this will compound fees for all users in that vault.
To use this option, navigate to any of your open positions and find the “Compound Fees” button in the earned fees section. Something to bear in mind, especially on networks with high transaction costs, is that the user who triggers the transaction pays the gas fee.
More Features on the Horizon
In the coming weeks we will be adding the ability for our users to add liquidity with 1 token, removing the need to swap assets into the required ratio before adding liquidity.
