> ## Documentation Index
> Fetch the complete documentation index at: https://docs.berafarm.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Yield and Auto-compounding

> Where Berafarm yield comes from, how each harvest claims, converts, and redeploys rewards, and how it shows up as rising share prices.

You never claim rewards on Berafarm. The vault harvests, converts, and redeploys all yield automatically. Your share prices simply rises. This page explains where the yield comes from and how the compounding loop works.

#### Where the yield comes from

Berafarm vaults earn from multiple sources simultaneously, depending on the current strategy allocation:

* **Proof of Liquidity (PoL) emissions** : staked LP positions earn **BGT**, Berachain's governance emission, which the vault routes through **Infrared** and receives as liquid **iBGT**
* **Trading fees** : concentrated liquidity positions on Kodiak earn swap fees from both sides of the pair
* **Lending interest** : capital supplied to money markets (e.g. Dolomite) earns borrow interest
* **External vault yield** : positions in whitelisted third-party vaults (e.g. Re7) accrue their underlying returns

The blend between these sources or new is not static, it is what our weekly strategy rotation adjusts.

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#### The compounding loop

Every harvest cycle, the vault:

1. **Claims** accrued rewards across all positions. PoL emissions via Infrared, LP fees, lending interest
2. **Converts** reward tokens (iBGT, incentive tokens) into strategy assets via on-chain swaps
3. **Redeploys** the proceeds back into the current strategy allocation
4. **Updates NAV** : total vault assets rise, the waterfall allocates the gain between tranches, and each tranche's share price moves accordingly

Every step is a public transaction on Berachain. A harvest is visible on-chain as: rewards claimed → swapped → redeposited, all traceable from the vault's address.

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#### What this means for you

* **No claim transactions.** There is nothing to harvest, no reward dashboard to check, no claim gas to pay.
* **No reward-token management.** You are never left holding emission tokens that need selling, the vault converts them at harvest.
* **Compounding from block one.** Rewards are redeployed into earning positions rather than sitting idle, so your yield itself earns yield.
* **Your yield = share price appreciation.** To see your return, compare your tranche's share price now versus when you deposited. That's it.

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