# Manual and Auto Compound

We will show the difference between manual mode and auto-compound mode.

### **Auto-compound mode**&#x20;

In this mode, the yield farming rewards are decided only by one factor:

* LP Shares: the more LP a user is staked, the more rewards yield.&#x20;

All the mined yield farming rewards will automatically sell in DEX to get LP tokens, and reinvested into the vault. This idea is very similar to compound interest in the loan industry which maximized the user's APY.&#x20;

In this scenario, users could benefit from the following two cases:

* Users may not want to manually reinvest yield farming rewards into LP Tokens. Our protocol will save the user time and transaction gas costs.
* Users believe the value of the LP Tokens will increase in the future or the value of yield farming rewards will decrease in the future.

### **Manual mode**

In this mode, the yield farming rewards is decided by two factors:&#x20;

* LP Shares: the more LP a user is staked, the more rewards yield.&#x20;
* Stake Time: the earlier the user stakes, the higher rewards yield.

This means that the amount of yield farmed tokens users A and B receive will be different even though they have the same LP shares (as rewards are distributed based on LP shares). This scenario occurs when users A and B open their leveraged yield farming position at different times, resulting in users starting to stake LP tokens to accrue farmed tokens at different times.

If two users stake at the same time, their reward split will simply be proportional to their LP shares. Thus, positions with the same stake-time are the same and are _fungible_ (up to LP share amount, which can be reflected in token balance).

In this scenario, users could benefit from the following two cases:

* Users may not want to use auto-compound mode, since they may gain higher rewards with earlier stake time.&#x20;
* Users may want to keep the yield farming rewards if they believe the value of the rewards will increase in the future.

![](https://1226653335-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfqIxqwxFnQh-iqYG8x%2F-Mgfi9HXMr2KZeMha5mu%2F-MgfifE6hqjpSaQ3gcRF%2Fimage.png?alt=media\&token=ab25b699-b5a6-480c-9ca1-6e75b50907c3)
