Yes, if you lend your tokens, the interest will be automatically compounded. This means that the interest earned on your tokens will be added to your principal and will generate more interest on the increased amount. For example, if you lend 100 tokens and receive 10 tokens in interest, the next time you receive interest, it will be calculated on the total of 110 tokens. This process is known as compounding and allows you to earn more interest over time. However, when it comes to mining apy (Usdd reward), this process will not be automatically compounded. Instead, you will need to manually add the interest earned to your principal in order to benefit from compounding.
