Automatic
Compounding
Your interest automatically reinvests every day. No manual claiming, no gas fees, no work required. Let compound interest work its magic while you sleep.
Daily compound
365x
For you
Frequency
Daily
Your Gas Cost
$0
Per Year
365x
Automation
100%
Powered by industry leaders
The manual compounding problem
Many crypto platforms require you to manually claim rewards and reinvest them. Each time you compound, you pay gas fees that can range from $10-50 depending on network congestion. If you forget to compound for a month, you miss significant returns. Manual compounding is inefficient, expensive, and defeats the purpose of passive income.
Manual vs automatic compounding
Compare the traditional manual approach with our automatic system
Manual compounding
- Must manually claim rewards regularly
- Pay $10-50 gas fee each time you compound
- Forget to compound? Miss significant returns
- Small balances not viable (fees too high)
- Requires constant monitoring and action
- Not truly passive income
Coinstancy automatic
- Automatic daily compounding (365x per year)
- Zero gas fees to you (we batch transactions)
- Never miss a compounding cycle
- Works for all balance sizes (even $100)
- Completely hands-off (set and forget)
- True passive income (works while you sleep)
How automatic compounding works
Daily reinvestment without any action from you
Interest accrues
Throughout the day, interest accrues continuously on your principal balance in the underlying DeFi protocols.
Daily calculation
At midnight UTC each day, our system calculates total interest earned by all users. This is your portion of the pool's daily yield.
Automatic reinvestment
Your daily earnings are automatically added to your principal balance. We batch all users into a single transaction, spreading gas costs across everyone.
Compound effect
Tomorrow's interest is calculated on your new, higher balance. Over time, this snowball effect significantly increases your returns compared to simple interest.
The power of compounding
See the dramatic difference between simple interest and daily compounding over time
| Time Period | Simple Interest (7%) | Daily compounding (7%) | Extra Earnings |
|---|---|---|---|
| Initial deposit | $10,000 | $10,000 | $0 |
| After 1 year | $10,700 | $10,725 | +$25 |
| After 3 years | $12,100 | $12,318 | +$218 |
| After 5 years | $13,500 | $14,177 | +$677 |
| After 10 years | $17,000 | $20,096 | +$3,096 |
| After 20 years | $24,000 | $40,388 | +$16,388 |
Result: Over 20 years, daily compounding earns you an extra $16,388 (68% more) compared to simple interest on the same 7% APY.
Real-world use cases
How automatic compounding benefits different investors
Long-term wealth builder
Maria deposits $50,000 and leaves it for 10 years. With daily compounding at 7% APY, she earns $50,480 in interest. With simple interest, she would have only earned $35,000. The extra $15,480 is pure compound interest magic.
Small balance saver
Jake only has $500 to invest. On platforms requiring manual compounding, gas fees ($30) would eat 6% of his principal. With Coinstancy's automatic compounding, his small balance grows efficiently without any fees eating into returns.
True passive income
Robert travels frequently for work and doesn't have time to monitor his investments. He deposits $25,000 and never touches it. Automatic daily compounding ensures he never misses a reinvestment cycle, maximizing his returns without any effort.
Frequently asked questions
Everything you need to know about automatic compounding
How does automatic compounding work?
Your earned interest is automatically reinvested into your savings every day. This means your interest earns interest, creating a snowball effect that accelerates your returns over time.
How often is my interest compounded?
Interest is compounded daily — 365 times per year. This is significantly more frequent than most banks which compound monthly or quarterly, resulting in higher effective returns.
Do I pay gas fees for compounding?
No. Coinstancy batches all compounding transactions together, so individual gas fees are eliminated. You pay $0 in fees for automatic compounding.
Do I need to do anything to activate compounding?
No action required. Compounding is enabled by default on all savings pools. Once you deposit funds, your interest starts compounding automatically from day one.
What's the difference between simple and compound interest?
Simple interest only earns on your initial deposit. Compound interest earns on your deposit plus all previously accumulated interest. For example, $10,000 at 7% APY over 20 years earns an extra $16,388 with compounding compared to simple interest.
Is there a minimum balance for compounding to work?
No minimum balance. Compounding works on any amount, even with a small balance like $100. Because there are no gas fees, even small interest amounts are reinvested efficiently.
Start compounding today
Let compound interest work its magic. Deposit once, and watch your balance grow automatically without lifting a finger.
Daily compounding - Zero gas fees - True passive income