# Yield for Earn Vaults

The rebasing mechanism is a key feature of MortgageFi's Earn Vaults, designed to provide a seamless and efficient way for liquidity providers to accumulate yields.

How It Works

1. Automatic Yield Accrual:

* As borrowers make repayments and fees are collected, the total value in the vault increases.
* Instead of distributing these gains manually, the number of tokens each depositor holds is semi-automatically increased.
* In order to claim pending rebasing rewards use the compound in the Earn section of the [dashboard](https://mortgagefi.app/dashboard).<br>

2. Token Quantity Adjustment:

* The system periodically "rebases" by increasing the number of tokens in each depositor's pending balance.
* The total value of a depositor's holdings increases over time.


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