# Auto-compounding

{% hint style="info" %}
Auto-compounding needs to be turned on in the Rewards section of the LEEQUID web app. After this action, rewards will be compounded on a daily basis.
{% endhint %}

*Compounding* is the process in which an asset's earnings are reinvested to generate additional earnings over time. In LEEQUID, auto-compound converts rewards into sLYX on a daily basis. Since LEEQUID stakers receive earnings every 12 hours, enabling auto-compound can significantly boost the protocol's APY.

Toggling auto-compound in the web app is achieved through a single inexpensive transaction and comes with no additional costs for the user.&#x20;


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