Compound strategies
Choosing the share, the 100% corner, range effects, and how to read the carry.
One WAD number — the compound share — spans every posture from "pay me everything" to a liquidity black hole. This chapter is the practical guide: what each region of the dial means, what the 100% corner does, how the range interacts, and how to read the carry like a gauge.
The dial, region by region
| compoundShare | posture | what it implies |
|---|---|---|
0% | pure payout | the program is a fee router: everything splits between buyback/burn and the recipients. Depth only ever grows when someone adds liquidity by hand. |
25–75% | the balanced middle | fees fund both the present (payouts, pot fuel, burns) and the future (depth). 50% is the canonical shape: half of every fee becomes more pool. |
100% | the black-hole corner | every harvested wei either becomes liquidity now or waits in the carry to become liquidity later. No recipient is even required — there is no remainder to name one for. |
compound + buyback ≤ 100% (secondary) and compound + burn ≤ 100% (main) mean a 100% compound share forces the other shares to zero, and the remainder legs vanish — the set-time validation drops the live-recipient requirement because value can no longer flow to one. Pair it with a surrendered owner and the pool's fees are provably incapable of ever leaving the pool.
How the range changes the game
| range | compounding behaviour |
|---|---|
| full range | always in range, so every compound is two-sided and the carry stays small — the set-and-forget shape, and what launchPool's (0,0) gives you. |
| concentrated | each unit of budget buys MORE depth near the price (that's the point of concentration) — but when the price leaves the range, compounds go one-sided and the abandoned side's carry grows until the price returns. |
The range is fixed at program creation, so this is a launch-time decision: full range optimizes for the compound loop's consistency, a tight range optimizes each mint's depth-per-wei at the cost of carry volatility. Neither is wrong — they are different products.
Reading the carry like a gauge
| reading | what it tells you |
|---|---|
| both small, both turning over | healthy: fee flow roughly matches the price's ratio, mints consume nearly everything |
| one side large and growing | fee flow is directional (heavy one-way volume) or the price has drifted from your range's center — the mint keeps binding on the same side |
| both large, liquidity flat | the price is outside a concentrated range — compounds are waiting for it to come back (or the pool is simply quiet) |
A standing carry is never stuck value — every future harvest retries it, even a harvest with zero new fees — but it IS information: persistent one-sided carry on a concentrated range is the machine telling you the range no longer matches the market. The lever is the owner's, not the machine's: liquidity choices stay human, budgets stay automated.
Sizing the share against your goals
The share competes with the pot and the recipients for the same gross, so set it from the goal backwards: a launch wanting a price floor leans buyback-heavy (the pot works immediately, depth pays off later); a mature pool wanting routing share leans compound-heavy (depth is what aggregators price); a treasury-funded project can run 100% compound and let donations do the buyback work. And because the operator can retune the shares at any time (until surrendered), the dial is a strategy, not a commitment — Manage your program walks through the edit path.
FAQ
What's a sensible default compound share?+
Most programs run 30–70% on the secondary side. Below that the position barely grows; above it the recipients see little — pick by how much you value depth versus income.
When is 100% compound the right call?+
Bootstrap phases and community pools: everything the pool earns makes the pool deeper. Pair it with a locked owner and you get an ownerless, self-deepening pool.
How do I read the carry as a signal?+
A persistently growing carry means the pool's price drifted from your position's balance point — the mint keeps hitting the same-side limit. It resolves itself when the price returns or the range is right.
Should the two sides use the same share?+
Not necessarily: the secondary side competes with the buyback share (pot funding), the main side with the burn share. Balance each side's trio for your goal — depth, defense, or supply reduction.
Can I change the shares as the pool matures?+
Any time, via the operator's setProgramConfig — heavy compounding early, then dialing toward recipients or burn later is a common lifecycle.