Time Is Your Friend | Auto-Compounding Feature

Uniqo
3 min readNov 8, 2022

Time is your friend. Even before assessing the risk of an investment, it is essential to establish its time horizon. One of the best practices in finance is the following:

In order to make your goal come true, you must be clear about how long it will take you to achieve it without having to worry about market fluctuations.

This is the time horizon.

Time — the duration of investment — is an important element that can make a contribution to achieving one’s goals. This is because time allows you to take advantage of the mechanism of compound interest: reinvested returns generate other returns and so on.

Let’s try to see the effect of compounding on two same sized investments over a time horizon of 1 year.

In the first case (blue bars), the investor decides to take their daily profit. In the second case (gold bars) however, the investor compounds their rewards for the whole year.

As it can be seen in the picture above, the difference in the outcome of reinvesting the returns, rather than cashing them in, is quite important.

The duration of an investment can also be a lever with which to achieve a goal more quickly, because you can take advantage of the return over time and the effect of compound interest. Of course, investment choices depend on many factors, but when making an investment decision, it is necessary to keep in mind that time is a resource at our disposal and that it can help us reach our goals more easily.

Time is a major element in a protocol like Uniqo. Auto-Compounding is a key feature of the Protocol and it allows investors to embrace the full potential of reinvesting rewards over time, without the inconvenience of having to take care of it manually. This not only nears the break even point for an investor, but also saves them precious time that can be instead spent on improving other facets of their investment strategy.

Auto-Compounding rewards means that interest grows exponentially, thus a long-term investment is able to generate much greater profits than a short-term investment. This is why the patience of an investor plays an important role in Uniqo, as they need to fully understand the power of compounding and decide how to manage their position.

Not all investors are the same. Neither are their wallets. Therefore every user will be able to search for the best strategy that suits their needs and maximize their rewards according to their expectations.

Be with Uniqo, Stay for the revolution!

Uniqo Docs | Auto-Compounding: https://docs.uniqo.finance/protocol-features/auto-compounding

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Uniqo

Uniqo strategically manages inflation and deflation to protect investors from volatility while providing passive income. https://uniqo.finance