> For the complete documentation index, see [llms.txt](https://docs.extrafi.io/extra_finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.extrafi.io/extra_finance/leverage-farming/strategy/re-investing-strategy.md).

# Re-investing Strategy

### **What is Re-investing Strategy?**

Re-investing is an important method for generating high profits. Extra Finance assists users by automatically taking out their profits and reinvesting them into relevant positions. This allows profits to be quickly generated, maximizing earnings.

### **How does it work?**

To execute a re-investing strategy, you will need to first open a farming position. Once the position is opened, Extra Finance’s auto-compounding bot will help you automatically take out your profits and reinvest them in relevant positions.

The formula of re-investing for reference is:

$$
APY = (100%+\frac{R}{N})^N
$$

In which R is the APR, N, the compound frequency, is how many times we reinvest per year. This can also be reduced when N is much larger than R:

$$
APY = ((100%+\frac{R}{N})^\frac{N}{R}) ^{R}\to e^{R}
$$

At Extra Finance, the auto-compounding strategy runs every 24 hours to help you achieve higher returns. This feature is designed to optimize your investment and increase your earnings.


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