Concentrated Liquidity Fee Compounder

WHAT IT DOES

Concentrated Liquidity Fee Compounder lets you automatically claim trading fees from your LP positions and reinvest them directly back into the same position (or a target range) to increase your liquidity. Instead of manually claiming fees, swapping tokens, and adding liquidity in separate transactions, you add your LP positions, check your accrued fees, and execute a single batched compounding transaction. The tool claims the fees from each position, swaps the fee tokens (if needed) to match the position's token ratio, and adds the reinvested amount back into the position. This accelerates your yield by putting earned fees to work immediately, without manual intervention.

HOW TO USE

Connect your EVM wallet and select the network. Enter the NonfungiblePositionManager contract address (e.g., Uniswap V3). In the input area, list the LP token IDs you want to compound fees from. Set your slippage tolerance to protect against price changes during the swap. Click "Add token IDs" to load them, then click "Check fees" to verify that you own each position and to view the accrued fee amounts. Review the status, then click "Compound fees" to execute the transaction. The tool claims the fees, swaps them into the correct tokens if needed, and reinvests them into the same position.

TECHNICAL MECHANISM

The tool first verifies ownership of each LP position and reads the accrued fees using the positions() function on the NonfungiblePositionManager. It then uses a two-step process for each position: (1) calls collect() to claim the fee tokens (tokensOwed0 and tokensOwed1) from the position, and (2) uses a swap router to convert the fee tokens into the correct ratio for the position (if the fees are not already in the correct tokens), then calls mint() or increaseLiquidity() to add the reinvested amount back into the same position. The tool applies slippage protection to the swap and uses receipt.effectiveGasPrice for accurate gas reporting. Progress feedback is provided during the compounding process.

WHAT IT CANNOT SEE

This tool cannot compound fees from positions that are not owned by the connected wallet—ownership is verified before proceeding. It relies on the DEX contract supporting fee collection and reinvestment without manual withdrawal; positions in pools that do not support these functions or use non-standard LP tokens are not supported. The tool cannot guarantee that the reinvestment will be profitable—compounding may result in lower returns if gas costs outweigh the fees. It also cannot avoid slippage entirely; slippage protection is applied but cannot guarantee execution if market conditions move against the user. Gas costs scale with the number of positions compounded.

PLEASE NOTE

Compounding fees may incur swap fees and gas costs that could reduce the net benefit for small fee amounts. Ensure the fee amounts justify the compounding cost. The position manager contract must be trusted; verify its security and audit status before use. This tool is for EVM chains only and does not support non-EVM networks.