How Compounding Yield Works in DeFi

How Compounding Yield Works in DeFi (And Why It Multiplies Affiliate Income)

Compounding Explained Without the Math

Compounding simply means earning on past earnings. In DeFi, this often happens automatically.

With pool funding, rewards can be:

• Reinvested back into the pool

• Added to future earning cycles

• Used to grow capital without new deposits

Why Compounding Changes Everything for Affiliates

When referrals reinvest:

• The pool grows

• Total yield increases

• Your earnings expand without new signups

This is how one referral can outproduce dozens of traditional ones.

The Snowball Effect of Reinvestment

Small daily returns may feel modest—but over time, they stack, accelerate, and dominate.

This is the same principle used in:

• Long-term investing

• Retirement funds

• Endowment portfolios

Crypto just makes the cycle faster.

Internal Link Prompts

• Daily Payout Crypto Models Explained

• Pool Funding Affiliate Earnings Guide

• How to Build Passive Income in Web3