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Optimal Compounding

Polli's intelligent compounding system automatically claims and re-stakes your rewards at the optimal frequency to maximize your returns while minimizing transaction costs.

How It Works​

Our system calculates a personalized optimal compounding interval for each validator delegation based on:

  • Stake size - larger stakes benefit from more frequent compounding
  • Current APR - higher yields make compounding more profitable
  • Transaction fees - network gas costs are factored into timing decisions
  • Service fees - optimization fees are included in profitability calculations

Adaptive Timing​

  • Small wallets - compounding too frequently would result in losses due to network fees. Our system may compound weekly or monthly.
  • Medium wallets - optimal intervals typically range from a few days to a week.
  • Large wallets - daily or even more frequent compounding may be optimal.

The system continuously recalculates the optimal interval as your stake grows and market conditions change.

Profitability Checks​

Compounding is only executed when it's profitable. Before each compounding action, the system verifies:

  • ✅ Claimable rewards exceed transaction costs
  • ✅ Rewards exceed service fees
  • ✅ The optimal interval has elapsed since last compounding
  • ✅ Sufficient fee grant or wallet balance exists

If any check fails, compounding is postponed until conditions are favorable.

The Compounding Process​

  1. Reward Analysis - system checks pending rewards across all your delegations
  2. Interval Calculation - determines optimal timing based on APY maximization
  3. Profitability Verification - ensures compounding will be net positive
  4. Execution - claims rewards and immediately re-delegates them to the same validators
  5. Fee Collection - service fee is collected only after successful compounding

Maximizing Returns​

By automatically compounding at optimal intervals, Polli helps you:

  • Maximize APY - compound interest grows your stake exponentially
  • Avoid wasteful fees - never compound when it's not profitable
  • Save time - no manual monitoring or transaction execution needed
  • Scale efficiently - as your stake grows, compounding frequency adapts automatically

Your rewards are always reinvested at the perfect timing to maximize long-term returns.