> For the complete documentation index, see [llms.txt](https://mamo.gitbook.io/mamo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mamo.gitbook.io/mamo/mamo/variable-rates-and-auto-compounding.md).

# Variable Rates and Auto-Compounding

## **Your rates will move — that’s how it should be**

The returns you earn with Mamo are **variable**. Your APY (annual percentage yield) shifts with market conditions. Some days it might be 10%, other days 8% or 12%. That’s normal — and healthy. 

But you shouldn’t have to track every change or chase yields across different platforms.\
Mamo does that for you.

Whether you're using the **USDC Account** or the **Bitcoin Account (cbBTC)**, Mamo quietly monitors lending markets across [**Moonwell**](https://moonwell.fi/) and [**Morpho**](https://morpho.org/), automatically moving your funds to wherever they can earn more.

No spreadsheets. No dashboards to check. You stay in control, while Mamo handles the rest.

## Powered by real market activity

These rates aren’t random — they reflect real supply and demand.

* When more people want to borrow **USDC** or **cbBTC**, lenders (like you) earn more.
* When fewer people borrow or more capital enters the market, rates go down.

It’s the same principle that powers all open markets.\
And through it all, **Mamo keeps your money working where it earns best** — automatically.

## Compounding, quietly in the background

Interest you earn is added to your balance, so your next round of earnings grows from a larger base.

* If you earn $10 today, that $10 gets added to your principal.
* Tomorrow, you earn interest on your original balance **plus** that $10.
* Over time, that’s how money builds momentum.

This isn’t flashy. It’s just **smart compounding** — a powerful habit, automated for everyone.

## What about reward tokens?

In addition to borrower interest, lending platforms often give out extra rewards like **WELL** and **MORPHO** tokens. Mamo collects these rewards, and once they reach a $5 threshold, automatically converts them into **your original asset** — either **USDC** or **cbBTC**.

No claiming. No token swaps. No tracking extra assets.\
Just more of what you already own, added to your balance and automatically compounded.

## Small habits, big results

A $1,000 balance earning 10% annually becomes $1,100 with simple interest.\
But with daily compounding, it grows to $1,105. That extra $5 might seem small, but over time, and across larger balances, it adds up. That’s the power of consistency.

And with Mamo, it happens quietly, in the background.\
No chasing. No timing. Just calm, steady progress.