# Why use Yield Yak?

## Save Time, Gas Costs, and Earn More Yield

Many DeFi protocols pay rewards to users in the form of tokens (farming rewards). Farmers who claim rewards often and compound their deposits maximise their rewards and farming yield. However, most farmers do not reach an optimal level of returns for two reasons:

* **Prohibitive gas costs** to claim and compound farming rewards
* **High time commitment** to frequently compound

Yield Yak helps all farmers earn more yield by pooling assets and socializing the costs of compounding. This means much more frequent compounding, which happens automatically.

## Reduce Variance on Reward Asset Prices

Popular Yield Yak farms compound every few hours. Reward tokens are converted into deposit tokens on behalf of all users in the pool many times per day, providing users with a blended price exposure to reward assets.

Consider an example: A farmer stakes $50 of LP tokens into a farm. The farmer receives rewards worth 0.05 USDC per day. That means, on average, the farmer only generates enough value from claimed rewards to pay the gas costs by waiting for days or weeks.

During this period where the farmer is waiting for the rewards to be worth claiming and compounding, they are at risk of the reward asset price shifting.

Farmers who use Yield Yak instead, will earn the average price for rewards over the period while enjoying compounding effects on their deposits.


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