# Auto Compounding

Auto-Compounding automatically reinvests your earnings to increase your liquidity position. It is a way to automatically increase your position size on a certain LP position. Learn more in this blog post on [Mangata Auto-Compounding](https://mangata-finance.medium.com/auto-compounding-via-xcm-d6d8a43be363)**.**

{% hint style="warning" %}
To set up auto-compounding for your LP positions, you must already be providing liquidity on Mangata X. This can be done via the Mangata X trading app, following the [**Add & Remove Liquidity** ](https://docs.mangata.finance/welcome/guides/liquidity-provision/add-and-remove-liquidity)guide. Liquidity can also be provided via Yield Bay's auto-compounding interface.
{% endhint %}

{% hint style="info" %}
Auto-compounding requires creating a proxy account that reserves 5000MGX from your balance. If you cancel auto-compounding, you can get your reserved tokens back by following 
{% endhint %}

{% hint style="danger" %}
Please note, your account should hold approximately 200 TUR to cover associated fees.
{% endhint %}

### Setting Up Auto Compounding

{% embed url="<https://youtu.be/zFoMWrzxGV4>" %}

### Step **1:**

Go to <https://mangata.yieldbay.io/> and connect your wallet. Find the LP pool you want to automate and click on **`Autocompound`**.

<figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2F0YHbTGzsilkSkZiT73bp%2FScreenshot%202023-05-10%20at%2017.01.51.png?alt=media&#x26;token=c5771db9-ed8a-41e0-98cf-d84f4ac94cbd" alt=""><figcaption></figcaption></figure>

### Step 2:

From the user interface, adjust your compounding settings. Select the duration, frequency, and percentage of rewards you would like to compound.

As of now, auto-compounding fees can only be paid using TUR. However, the ability to pay these fees with MGX will be introduced soon.

Once you've adjusted your settings, click **`confirm`.**

<figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2FHfvbj9Q2v333FYc7HuoE%2FScreenshot%202023-05-10%20at%2017.05.32.png?alt=media&#x26;token=42613906-eda3-4bc7-88d6-12bb3bae9cf4" alt=""><figcaption></figcaption></figure>

### Step 3:

**`Proceed`** with the transaction, then sign and submit from your wallet.

<figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2Fzb0XkU4l6AISj97LCpOj%2FScreenshot%202023-05-26%20at%2012.49.47.png?alt=media&#x26;token=5d5d8f38-ca59-43f3-89d0-3cd8efdf3c84" alt="" width="293"><figcaption></figcaption></figure>

## Stop Auto Compounding

### Step **1:**

Go to <https://mangata.yieldbay.io/> and connect your wallet. Find the LP pool you want to stop auto-compounding and click on **`Manage`.**

<figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2FaGzuzxynezZa3cIcP1YA%2Fautocomp12.png?alt=media&#x26;token=2f9ad564-2421-45bf-8d56-c4917b930f82" alt=""><figcaption></figcaption></figure>

### Step 2:

Go to the bottom of the pop-up and click on **`Stop Autocompounding`**. A new screen will appear, asking if you are sure.

<div><figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2F9DZW9DDup8XaSuIIXaAY%2FScreenshot%202023-05-26%20at%2013.00.20.png?alt=media&#x26;token=150a843a-545d-4afb-84df-dc00215966bf" alt="" width="300"><figcaption></figcaption></figure> <figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2Fsq42hZojVzMU2IMNnMAd%2FScreenshot%202023-05-26%20at%2013.10.09.png?alt=media&#x26;token=bc4dbf5b-938a-4e5d-ad36-aef7bf890c51" alt="" width="375"><figcaption></figcaption></figure></div>

### Step 3:

Sign the transaction from your wallet.

Make sure to retrieve your reserved assets by following [How to clear proxy reserve](https://docs.mangata.finance/welcome/guides/technical-guides/how-to-clear-proxy-reserve) guide.

<figure><img src="https://3624648318-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLbqvmGewRWFC8kc3j3Y5%2Fuploads%2Fu87w73OSb0YMwkdI8a6G%2FScreenshot%202023-05-26%20at%2013.00.57.png?alt=media&#x26;token=c8c705fa-eda3-4fd3-8b25-8e4a7ddb1008" alt="" width="299"><figcaption></figcaption></figure>