# ❓ How Does it Work?

At RLD, our vaults utilize a simple yet powerful auto-compounding strategy to generate maximum yield for our users. \
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When you deposit funds into a vault, we allocate those funds into the underlying protocol that interacts with the strategy. This allows us to automatically reinvest the rewards generated by the protocol, leading to a compounding effect that boosts your returns over time.

To further enhance your earning potential, we compound rewards on a daily basis, ensuring that your investment is working hard for you around the clock. By eliminating the need for manual compounding, we offer a hassle-free and highly effective way to generate Real Yield with minimal effort on your part.

With our auto-compounding strategy, you can sit back and relax while your investment grows at an accelerated rate, providing you with a reliable and secure source of passive income.

<figure><img src="https://1829327583-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FKFYOQWWuqfdqX72ZnNDn%2Fuploads%2F6AHY63CSTeBkI9FBPW8H%2FCompound.png?alt=media&#x26;token=290d8326-6478-4b4a-a340-cca7ab59e11c" alt=""><figcaption><p>Our auto-compunding strategy</p></figcaption></figure>