Autocompounding rewards refer to the process where earned rewards or interest are automatically reinvested into the principal amount, increasing the total investment over time. This mechanism allows users to benefit from the power of compounding, where rewards generate additional rewards.In practice, when users stake their tokens or provide liquidity, they can accumulate rewards based on the amount they have staked or the liquidity they have supplied. Instead of needing to manually claim and reinvest these rewards, autocompounding ensures that the rewards are added directly back to the original stake.This feature helps to maximize returns without requiring constant management of the investment. As a result, users can passively grow their holdings, making it an attractive option for those seeking to enhance their earnings over time. Autocompounding can be particularly beneficial in DeFi protocols, where high yield strategies are employed to generate substantial returns.