The Math: Compound Frequency vs Total Return

One of the most common questions from new Turbo Loop users: "How often should I Re-Loop?" Daily? Weekly? Monthly? The answer depends on your goals — but the math is clear, and worth understanding.

The general rule

More frequent compounding = higher effective APY, up to a limit. The gap between daily and continuous compounding is small. The gap between daily and monthly is meaningful. The gap between monthly and "never compound" is massive.

A concrete example

Assume 1% daily yield on $1,000, over 90 days:

• Never compound (pure simple interest): $1,000 + ($1 × 90) = $1,090. You earned $90.
• Compound monthly (every 30 days): Roughly $1,334. You earned $334.
• Compound weekly (every 7 days): Roughly $1,390. You earned $390.
• Compound daily: $1,000 × (1.01)^90 = $2,449. You earned $1,449.

From never-compound to daily-compound: 16x more earnings over 90 days, same starting capital, same daily rate.

Why the gap is so wide

Each day's yield becomes new principal earning the next day's yield. The longer you compound, the larger the compounding base, the faster the growth. This is the exponential growth curve that makes long-term DeFi returns dramatic.

Gas considerations

On BSC, Re-Loop transactions cost $0.10 - $0.50 in BNB. For a $100 position, daily compounding might cost $30/year in gas — breakeven at this scale is around weekly compounding. For a $1,000 position, daily compounding is clearly worth it. For a $10,000 position, daily or even twice-daily is optimal.

Practical recommendation

• Position under $500: Re-Loop weekly.
• Position $500 - $5,000: Re-Loop daily.
• Position over $5,000: Re-Loop daily, consider batching on gas-quiet times.

The key insight: do not let yield sit idle. Whether you compound daily or weekly matters less than whether you compound at all.