APR is what you earn. APY is what you keep compounding it.
A CLMM position accrues fees continuously, but they sit outside the position until someone collects them. Uncollected, they are idle capital. Collected and redeposited, they widen the base the next fees are earned on.
APY = (1 + APR/n)ⁿ − 1 n = compounding events per year| Pool APR | No compounding | Monthly | Weekly | Daily |
|---|---|---|---|---|
| 20% | 20.0% | 21.9% | 22.1% | 22.1% |
| 50% | 50.0% | 63.2% | 64.5% | 64.8% |
| 100% | 100.0% | 161.3% | 169.3% | 171.5% |
Where it stops paying
Every collection is a transaction, and on a concentrated position it usually pairs with a swap to rebalance the two sides before redepositing. On Solana that is cents — but cents against a small fee balance is the whole point.
Collecting $0.40 of fees to redeploy them is not compounding, it is paying gas to move money sideways. The rule that survives contact with reality: collect on a threshold, not on a timer — wait until the accrued amount is worth the transaction, then act.
Reinvest or keep aside
Two different goals, and they need different settings:
- Reinvest — fees go straight back into the position. Capital grows, and so does the exposure. This is what the table above describes.
- Keep on balance — fees are collected and held as USDC, out of the LP. You are drawing an income rather than growing a base.
One consequence worth knowing before you choose "keep": the held amount is genuinely held back. It does not get redeployed, which means it also is not available to fund a new position. On a small account that can quietly block an open — the bot shows an explicit warning for exactly that.
What the bot does
- Collects on a threshold you set (minimum $3) or on a schedule of 1–90 days.
- Reinvests or holds, per your choice, switchable at any time.
- Reads real pending fees from the position on-chain rather than a cached checkpoint — on Raydium a stored checkpoint can lag far behind what the position has actually accrued.
- Refuses to collect when the amount would not cover its own transaction.
The landing page calculator shows the compounding effect for your own numbers, including the time-in-range factor that decides how much there is to compound in the first place.