# Auto-Compounding \[retired] ## These auto-compounding strategies with [zkLend exploit](https://x.com/strkfarm/status/1889933140657053786) exposure have been retired. You can check your partially recovered funds [here.](https://app.strkfarm.com/recovery) ## 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 Troves. You can withdraw anytime by redeeming your frmzSTRK for zSTRK and see your STRK in zkLend. ## Why? Using the auto-compounding strategy in Troves 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 Troves 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 Troves. 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 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.troves.fi/p/auto-compounding-retired.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.