🏦Auto-Compounding

What is an auto-compounding strategy?

There are 2 strategies available in auto-compounding

• Auto Compounding STRK

• Auto Compounding USDC

Stake your STRK or USDC or zkLend's zSTRK or zUSDC token to receive DeFi Spring $STRK rewards every 7 days. The strategy auto-collects your rewards and re-invests them in the zkLend STRK pool, giving you higher return through compounding. In case of auto-USDC the strategy auto-collects your $STRK rewards, swaps them to USDC and re-invests them in the zkLend USDC pool, giving you higher return through compounding. You receive frmzSTRK or frmzUSDC LP token as representation for your stake on STRKFarm. You can withdraw anytime by redeeming your frmzSTRK for zSTRK and see your STRK in zkLend.

Why?

Using the auto-compounding strategy in STRKFarm offers several benefits:

• Maximized Returns: Automatically reinvesting yields ensures that your earnings continuously grow, leveraging the power of compound interest.

• Time Efficiency: Eliminates the need for manual intervention to reinvest rewards, saving you time and effort.

• Cost Efficiency: By automating the process, it minimizes transaction costs, especially on a scalable and low-fee network like Starknet.

• Optimization: Ensures that your assets are always working at their highest potential without requiring constant monitoring.

Technical details:

1. ERC4626: The auto-compounding strategy in STRKFarm utilizes an ERC-4626 contract to enhance yield optimization. This contract accepts Stark tokens and deposits them into zkLend. Users can either deposit STRK or USDC tokens directly or deposit zSTRK or zUSDC tokens, which are obtained by depositing STRK or USDC into zkLend. The strategy ensures that the rewards are automatically reinvested to maximize returns. Withdrawals can be made using frmmzSTRK or frmmzUSDC tokens, providing a streamlined and efficient process for managing investments.

2. Technical Flow of Funds: Users deposit Stark tokens into the ERC-4626 contract on STRKFarm. Alternatively, users can deposit zSTRK tokens, which they receive by depositing STRK into zkLend. The ERC-4626 contract automatically deposits the received Stark tokens into zkLend. If zSTRK tokens are deposited, they are directly utilized within zkLend. zkLend generates yield on the deposited tokens through its lending protocols. Every 2 weeks the strategy re-invests your STRK Rewards which compounds your yeild on zkLend.

3. Our Contracts :

   1. Auto Compounding STRK: 0x00541681b9ad63dff1b35f79c78d8477f64857de29a27902f7298f7b620838ea

   2. Auto-Compounding USDC: 0x16912b22d5696e95ffde888ede4bd69fbbc60c5f873082857a47c543172694f

Risks