In the compound staking system, two smart contracts work together to manage staking and reward compounding:
1. MasterChef Contract
- This is the core staking contract where pools are created, funds are staked, and rewards are distributed.
- However, MasterChef alone does not support automatic compounding of rewards.
2. Vault (or Compounder) Contract
This is the contract users interact with directly. It handles:
- Deposits and withdrawals
- Automatic compounding of rewards
- The Claim Bounty mechanism
How the Vault Works
- When users deposit into the Vault, it stakes those tokens in MasterChef.
- In return, the Vault issues shares representing each user’s portion of the total Vault balance.
- As rewards accumulate, the Vault can harvest and reinvest them — this process is called "harvesting the bounty."
What Is the Claim Bounty?
When a user triggers this function:
- The Vault collects unclaimed rewards from MasterChef.
- These rewards are automatically reinvested into the pool.
- The user who initiated the action receives a small portion of the rewards as a bounty.
Why It Matters
- This incentivizes users to keep pools updated without centralized intervention.
- Anyone can support the system and earn a reward for doing so.
Why It Matters (Summary)
- Compounding increases the total pool balance, boosting everyone’s returns over time.
- Rewards start earning additional rewards — the power of compound interest.
- Even if the pool is full and no new rewards can be staked, users still receive the bounty for updating the internal accounting.
Key Notes
| Feature | Description |
| Compounding only works if pool has capacity | If full, new rewards cannot be staked, but bounty claims are still rewarded. |
| Automatic bounty harvesting | The Vault triggers bounty harvesting automatically on deposits and withdrawals to ensure daily compounding. |
| Bounty calculation | The bounty is a portion of rewards accumulated since the last harvest and not yet compounded. |
This system encourages user participation and helps ensure staking pools stay optimized — increasing efficiency and rewards for the whole community.
FAQ — Claim Bounty Explained
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Q1: What do I have to do to earn compound rewards?
A1: Just stake your tokens and leave them. The system reinvests your rewards automatically.
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Q2: What do I get if I trigger the bounty?
A2: You receive a small bonus — a share of the rewards — as a thank-you.
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Q3: Is triggering the bounty difficult?
A3: Not at all. It’s usually just one button to press on the platform.
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Q4: What happens if no one triggers the bounty?
A4: Rewards accumulate but won’t compound, so your earnings grow more slowly.
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Q5: Can I lose my rewards if nobody triggers the bounty?
A5: No. Your rewards are safe, but they won’t grow as quickly without compounding.
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Q6: Can anyone trigger the bounty?
A6: Yes, anyone can do it and earn the bonus for helping.
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Q7: Does depositing or withdrawing tokens trigger the bounty?
A7: Yes, deposits and withdrawals automatically update rewards and can trigger compounding.
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