Auto-Compounding
This is true zero-fee auto-compounding for Concentrated AMM liquidity!
This can make an enormous difference, especially at higher yields which concentrated positions are known for.
Old V3 Auto-Compounders
Existing auto-compounders don't compound for everyone. They allow other users to compound a single LP position by withdrawing and re-depositing in return for collecting a fee. This has multiple effects:
It does compound the position and the yield for that position is increased.
The fee is often significant and degrades the performance of the position.
Small positions don't earn enough fees to justify the compounding fee. Therefore they're either not compounded or their performance is severely harmed.
How it works
So how are we able to make do it without charging any fees? Well the trick lies in our Semi-Fungibility. All re-staked LP positions are actually broken apart and merged into the pooled position within each node. That means no matter the number of re-staked positions there are, the number of positions we have to compound never grows.
Second, every time a user re-stakes or un-stakes, we have to close and reopen the tree's nodes in their range. When that happens we take the opportunity to compound those nodes. Thus any action taken on our platform helps compound the positions of everyone in that same pool!
Who can opt in?
Any concentrated AMM position re-staked on Hyperplex can use this as a utility at no cost! No other layers are needed.
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