Compound Interest and Reinvestment
Last updated
Last updated
When designing DSF Invest, we aimed to make it as automated as possible—eliminating manual processes while maximizing profitability. Once your funds are deposited, they start generating income immediately. However, DeFi platforms distribute rewards in their native tokens usually, not in stablecoins. To truly benefit from these rewards, users must manually:
Claim rewards in native tokens, for example in Curve case its CRV
Pay blockchain fees to transfer them
Swap them into USDT, USDC, or DAI
Reinvest back into the strategy to maintain compounding returns
These steps require time, incur multiple blockchain fees, and demand ongoing effort to optimize returns.
That is where our tool comes to save: we fully automate this process and these rewards are then automatically converted by a smart contract into the same stablecoin that the user deposited and placed on balance, this process is called reinvestment.
1️⃣ Earnings accumulate in CRV & CVX As liquidity providers, we receive trading fees from Curve in their platform tokens.
2️⃣ Rewards are automatically swapped into stablecoins A smart contract converts CRV & CVX into the same stablecoin you originally deposited (USDT, USDC, or DAI). It happens every 2-3 weeks.
3️⃣ Profits are reinvested into the liquidity pool The converted stablecoins are added back to your deposit, increasing the total balance generating yield.
4️⃣ This cycle repeats approximately every 2-3 weeks To optimize fees, DSF Invest reinvests earnings periodically, depending on Ethereum’s network congestion.
Important Note: Only reinvested income can be withdrawn with the deposit!
If you withdraw before the next reinvestment cycle, any accumulated CRV & CVX rewards will be lost and redistributed among other users.
To avoid this, you can wait for the next reinvestment cycle before withdrawing
✅ Higher Returns Through Compounding
Each reinvestment increases the base amount generating yield, meaning you earn profits on profits.
This continuous reinvestment process maximizes total earnings compared to manually reinvesting at irregular intervals.
✅ Eliminates Manual Effort & Blockchain Fees
No need to claim, swap, or reinvest tokens manually.
You save on multiple blockchain fees—DSF covers them for you.
✅ Unique in DeFi
Most platforms require users to handle reinvestments themselves, making yield generation inefficient and costly.
DSF Invest is one of the only solutions offering full reinvestment automation in stablecoins.
Every blockchain transaction incurs a fee. Since we cover these fees for our users, exchanges and reinvestments are performed approximately once every two to three weeks, depending on Ethereum’s network congestion.