What are the fees for using compounder?

TLDR: 2.5% of one token in your unclaimed fees, and most of that is compensation for paying gas. However, this fee largely goes towards covering gas costs and is much lower than if you compounded the position yourself.

When a compounder wants to compound your position, they may choose to take the fee in either tokenA or tokenB.

2.5% fee breakdown:

  • 2% of whichever token the compounder picks will be compensation for paying gas.

  • 0.5% will go towards the compounder.fi protocol


Bob has a compounding position that has accumulated $200 of USDC and $100 of WETH in unclaimed fees.

Alice sees this and she decides to compound it. Alices decides she wants to take her reward in USDC, because she'd rather have $4 ($200 * 2%) of USDC over $2 ($100 * 2%) of WETH.

Alice is constantly monitoring Bob's position and waits until gas prices are low enough before she compounds Bob's position. She sees gas hit 20 gwei, and calls the compound function then. It costs Alice $3 in gas to compound Bob's fees.


  • $295 is added back into the position (USDC is swapped to ETH in the ideal amount before compounding)

  • $5 is taken as a service fee

    • $4 is given to Alice as compensation for paying $3 in gas (profit: $1)

    • $1 is given to the protocol for facilitating the transaction

Fees!? I don't like those!

Bob hates paying fees! He thinks it'd be cheaper if he did these transactions himself! He pulls his position out of compounder and waits for $300 in fees to accumulate again. He does the following transactions:

Bob pays 505,071 gas in total

Alice paid just 331,547 gas

Bob paid 52.3% more gas to do it himself.

Oh yeah, and he was impatient and did these transactions at 80 gwei, 4x more than Alice, who is incentivized to pay the least gas fee possible and waits for gas to be low.

When Bob had Alice & compounder.fi do it for him, it cost him $5 in fees in total.

When Bob did it himself, it cost him $18.28 (3.6x as much!)

Don't be like Bob and ask Alice for help!

Last updated