# General Questions ## **What is an algorithmic stablecoin?** Algorithmic stablecoin is a crypto token that uses price stabilization algorithms to keep the value of an asset, usually at $1. They increase the supply of tokens when the value goes up and reduce supply when it goes down. ## **What is compounding in the context of GoldMint Finance?** Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding. Basically, it is taking your farmed rewards and re-investing into the pool you started staking in, For example, consider a 3% daily APR on an initial investment of $100. After 24 hours it would grow to $103. After 365 days without compounding: $1195. After 365 days, compounding once daily: $4,848,272. ## Terminology Graphics & PAXG Information: ![](/files/tenwduDhofCq598SxA0H) ![](/files/fH8AGqShNTmbeXg3yo76) ![](/files/efAIVsJSoDFQb1t4evfS) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://goldmintfi.gitbook.io/whitepaper/frequently-asked-questions/general-questions.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.