# Auto-compounding Vaults

SteakHut brings low-cost accessible DeFi strategies to Avalanche with our range of auto-compounders. 

Our vaults automatically convert your rewards back into the underlying staked token, and reinvest it into the pool allowing you to sit back and enjoy compounded yields!

## Auto-compounding Vault Fees

**Performance Fee:** 4%

SteakHut’s ultra-low-cost auto-compounders have a small performance fee of only 4%. This is calculated only on the reward amount for each compound.

The transaction costs associated with auto-compounding are also socialized among all users, further reducing any fees.

**Performance Fee breakdown:**

* **4%** Accrued by SteakHut treasury

*Fee example: a user with $1,000 staked into the strategy earning 10% in rewards would only realize 4% fees paid on the $100 in rewards ($4). This is automatically realized during each compounding period.*

## sJOE Auto-compounding Farm

### Strategy

The sJOE auto-compounding farm using Trader Joe's sJOE staking to auto-compound your $JOE. When users stake their $JOE, our smart contracts deposit your $JOE into Trader Joe's sJOE staking, all rewards are then converted back into $JOE and re-invested. 

### Fee

> 2.5% performance fee
>
> Variable deposit fee (Dictated by Trader Joe)

The 2.5% performance fee is accrued on the reward balance each time the farm is compounded. Trader Joe's sJOE staking also has a deposit fee ranging from 0-3%.

***Fee Example:*** 

***User stakes:** $1000 in $JOE tokens*

***User yields:** 20%*

*Over the course of 1 year, the user accrues $200 in rewards. A 2.5% performance fee is acquired on the rewards each compounding period, meaning the user accrues $5 in rewards. When depositing a fee may also be acquired by Trader Joe ranging from 0-3%.* 

{% hint style="success" %}
Automate your sJOE staking
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{% hint style="success" %}
Rewards are re-invested for you
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Ultra-low-cost performance fees
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{% content-ref url="auto-compounding-vaults/sjoe-compounder" %}
[sjoe-compounder](https://whitepaper-old.steakhut.finance/getting-started/auto-compounding-vaults/sjoe-compounder)
{% endcontent-ref %}