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Tech deep dive: Boosting yield by compounding rewards
Deposit Curve LP tokens into an Alluo Vault and get your rewards compounded
When these rewards accumulate - usually in the form of CVX, CRV and other incentive reward tokens - they are swapped by Alluo for CVX-ETH LP and staked in the vault's respective Alluo Pool.
Then rewards simultaneously accumulate in the Vault and Pool from staked Vault underlying LP tokens and CVX-ETH LP tokens, from which this process of swapping to and staking CVX-ETH LP tokens is looped.
When holders of the ERC4626 Vault shares wish to withdraw, they receive the Vault underlying LP token back and they are eligible to claim any accumulated rewards from this loop process in the form of CVX-ETH LP.