> For the complete documentation index, see [llms.txt](https://documentation.kodiak.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.kodiak.finance/user-guide/baults-auto-compound.md).

# Baults (Auto-Compound)

### Table of Contents

1. [Overview](#overview)
2. [Quick Start Guide](#quick-start-guide)
3. [User Interface Guide](#user-interface-guide)
4. [FAQ](#frequently-asked-questions)

***

### Overview

**Baults** are auto-compounding vaults for your LP tokens. Instead of manually claiming WBERA rewards and reinvesting them yourself, Baults handle this automatically.

Here's how it works: you deposit your LP tokens, and whenever WBERA rewards accumulate, the vault automatically claims and reinvests them back into your position. 

#### Key Benefits

{% hint style="success" %}
**✨ Auto-Compounding** - Your WBERA rewards are automatically reinvested and compounded

**📈 Optimal Yield** - WBERA rewards are continuously auctioned to highest bidder

**🔒 Secure** - Built on battle-tested ERC-4626 vault standards

:heavy\_dollar\_sign:  **Tokenized -** Bault shares are fully composable in DeFi (and can be stacked with Kodiak Farm)
{% endhint %}

***

### Quick Start Guide

### Find Baults

To see which pools support auto-compounding, enable the **Baults** filter

<figure><img src="/files/6NVgpzCnMDRX2qZCZFhN" alt=""><figcaption></figcaption></figure>

**Steps to find Baults:**

1. Check the **"Baults"** filter box
2. Browse the pool list for auto-compounding opportunities

### Identifying Auto-Compounding Pools

Pools eligible for Baults will show a **star icon** (🌟) in the APR column.<br>

<figure><img src="/files/4cVYTRUQY5TErQ2NXEaL" alt=""><figcaption></figcaption></figure>

**Hover over the star** to see Bault details:

* "This pool is eligible for auto-compounding"
* Specific APY rate (e.g., "Earn 27.28% APY in Bault")

<figure><img src="/files/SIauJxgg35Wj3ueQsxCN" alt=""><figcaption></figcaption></figure>

***

### User Interface Guide

### Depositing in Baults

There are several ways to get your tokens into auto-compounding Baults:

1. **Migration from Reward Vault**

If you already have positions staked in Reward Vaults, you'll see a migration prompt appear automatically.

<figure><img src="/files/e18Y1SggFSwRwvIjMEl6" alt=""><figcaption></figcaption></figure>

#### When Migration Appears

The **"Migrate to Auto-Compound"** prompt automatically appears when:

✅ **You have positions in Reward Vaults** (manual staking)

**Example**: "You have $0.28 staked in the Reward Vault. Migrate to baults to automatically reinvest your rewards and maximize your yield."

#### 3-Step Migration Process

{% hint style="info" %}
Migration is a **3-step process** that ensures everything transfers correctly and safely.
{% endhint %}

<figure><img src="/files/YPoX7bAiyd11o7FvUsth" alt=""><figcaption></figcaption></figure>

**Step 1: Review & Start Migration**

**Migration Setup Modal**:

* **Amount Selection**: Choose how much to migrate (can be partial)
* **Balance Check**: Shows available LP tokens in Reward Vault
* **Important Warning**: "Any unclaimed rewards in your current vault will not be automatically migrated. Make sure to claim them separately before or after migration."

**Example from Interface**:

* Available to migrate: 0.0838315 KODI WBERA-HONEY
* Current value: $0.28
* Buttons: "Cancel" or "Start Migration"

**Step 2: Unstake from Reward Vault**

<figure><img src="/files/4qxbh6sbuPXfXPTVBKk5" alt=""><figcaption></figcaption></figure>

**What Happens**:

* **Removes LP tokens** from Reward Vault
* **Shows breakdown** of what gets unstaked vs rewards that remain
* **Transaction required** to unstake your position

**Interface Details**:

* **Total Value**: ($0.28) 0.0838315 KODI WBERA-HONEY
* **Accrued Rewards**: WBERA (<$0.01) 0.00069908 (not included in unstake)
* **Action Button**: "Unstake 0.0838315 KODI WBERA-HONEY"

{% hint style="danger" %}
**Important**: WBERA rewards remain unclaimed and are **not automatically claimed**. You can claim them before or after migration.
{% endhint %}

**Step 3: Approve & Deposit to Bault**

<figure><img src="/files/p7fkLA7T4iEXdlBtjfbG" alt=""><figcaption></figcaption></figure>

**Final Step**:

* **Token Approval**: Allow Bault contract to use your LP tokens (if needed)
* **Deposit to Bault**: Move LP tokens into auto-compounding vault
* **Receive Bault Shares**: Get auto-compound vault tokens

**Interface Shows**:

* **Final Amount**: 0.0838315203... KODI WBERA-HONEY
* **Value**: $0.28
* **Action Button**: "Confirm Deposit"

**Result**: Your LP tokens are now in the auto-compounding Bault, earning higher yields through auto-compounding.

2. **Using the Deposit Tab**

<figure><img src="/files/kEJFYsb5HyBUxkVG2iLq" alt=""><figcaption></figcaption></figure>

You are able to deposit directly to baults using the **Deposit Tab,** all you have to do is turn on the "Auto-compound rewards" toggle

<figure><img src="/files/mTONI1SD4xLXpaVesKDm" alt=""><figcaption></figcaption></figure>

The below table explains how the deposit tab flow works with the toggle turned on/off

{% tabs %}
{% tab title="Auto-Compound Strategy (Recommended)" %}
**🔄 Auto-Compound: ON**

**Deposit Only Flow**:

```
Your Tokens → Island LP → Bault Shares
```

* ✅ Add liquidity to Island pool
* ✅ Automatically deposit LP tokens into Bault
* ✅ Start earning auto-compounded WBERA rewards
* ✅ Receive Bault shares (compound over time)
  {% endtab %}

{% tab title="⏸️ Auto-Compound: OFF" %}
**Deposit Only Flow**:

```
Your Tokens → Island LP (in wallet)
```

* ✅ Add liquidity to Island pool only
* ✅ Receive Island LP tokens in your wallet
* ✅ Manual control over what to do next
* ✅ Can stake manually later via Stake tab

**With Staking Flow**:

```
Your Tokens → Island LP → BGT Reward Vault
```

* ✅ Add liquidity to Island pool
* ✅ Immediately stake LP tokens in BGT Reward Vault
* ✅ Earn BGT rewards (requires manual claiming)
* ✅ Direct WBERA rewards, no auto-compounding
  {% endtab %}
  {% endtabs %}

***

### 🎯 Stake Tab: Direct Staking

The **Stake Tab** is for users who already have lp tokens and want to stake them without adding new liquidity.

#### Real Example Walkthrough

<figure><img src="/files/R8UfGIqjTCjWCghTzpoG" alt=""><figcaption></figcaption></figure>

**From the Interface:**

* **Available**: 0.24194 KODI WBERA-HONEY (Island LP tokens)
* **Strategy**: Auto-Compound ON
* **Expected**: \~0.2409 Bault-KODI WBERA-HONEY shares
* **APY**: 52.88% (with auto-compounding)

**What Happens:**

1. Stakes your 0.24194 Island LP tokens
2. Deposits them into Bault auto-compounding vault
3. You receive \~0.2409 Bault shares
4. Starts earning 52.88% APY through automated WBERA compounding

***

#### Unstake Tab

The **Unstake Tab** lets you remove tokens from staking positions without withdrawing liquidity entirely.

<figure><img src="/files/oDwdnDL2nE2rQHUnQ1QT" alt=""><figcaption></figcaption></figure>

#### Smart Toggle System

**When you have multiple staking positions**, a toggle appears to choose which one to unstake:

<table><thead><tr><th width="192.1875">Your Positions</th><th>Toggle Options</th></tr></thead><tbody><tr><td><strong>Reward Vault + Bault</strong></td><td>"Reward Vault" | "Auto-Compound"</td></tr></tbody></table>

***

### ❓ Frequently Asked Questions

<details>

<summary>Which strategy should I choose as a beginner</summary>

**Recommendation**: Start with **Auto-Compound + Deposit Only**

**Why this is best for beginners**:

* ✅ Hands-off management (set and forget)
* ✅ Higher long-term returns than manual

</details>

<details>

<summary>💸 When should I withdraw vs unstake?</summary>

**Withdraw When**:

* You need the actual tokens for other purposes
* You're completely exiting
* You want to sell the underlying assets

**Unstake (Keep LP Position) When**:

* You want to change staking strategies (e.g. moving to an Infrared Vault)
* You're optimizing your current position
* You might restake differently later
* You want to keep LP exposure but change reward method&#x20;

</details>

<details>

<summary>🔢 How is APY calculated?</summary>

APY is calculated by annualizing the share growth from the 10 most recent realized compounds.

</details>

<details>

<summary>⚡ How often does compounding happen?</summary>

You can see how often compound happens in the bault analytics section on the app, it shows detailed information about a specific baults

</details>

<details>

<summary>🎫 What are Bault shares?</summary>

**Bault Shares Explained**:

* **Representation**: Your proportional ownership of the vault
* **Growth**: Share value increases as rewards compound
* **Standard**: ERC-4626 vault token standard
* **Fungible**: Can be transferred like any ERC-20 token

**Example**: Start with 1 share worth 1 LP token. After compounding, 1 share might be worth 1.1 LP tokens.

</details>