Spool V1 automatically compounded every Strategy included in the Ecosystem, or, in more practical terms: Sold off reward tokens for the underlying principal currency to boost the yield. Automated Compounding is a core feature of Spool and something that will remain in Spool V2.
A core change however, is the fact that Strategies in Spool V2 can offer the ability to decide for a given Smart Vault Creator:
A. Should Spool sell off all token rewards and accumulate more underlying assets?
B. Should Spool accumulate the token rewards for you?
Compound or Claim is a feature that will not be part of the Spool V2 MVP but will be available at a later date.