If you keep collecting SunSwap V3 fees expecting your position to grow, it will not: Collect pays accrued tokens to a recipient, while increasing liquidity takes a separate transaction. The payout can be useful, but it does not put more capital into your chosen price range.
Does Collect Grow SunSwap Liquidity?
Collect moves fees already earned by a V3 position. Trading fees accumulate as balances owed to that position, separate from the tokens supplying its liquidity. When you confirm collection, those balances move to the recipient address. The position's liquidity amount and price range remain unchanged, so the transaction alone gives it no larger share of later trades.
How Do You Put Collected Fees Back to Work?
Reinvesting means supplying tokens through an increase-liquidity operation on the position. The amounts you can use depend on the current price relative to its fixed range. Within that range, the price sets the needed mix of the two assets; near a boundary, the mix can become heavily weighted toward one token. Your collected fees may not match it. If the quoted addition needs more of one token than you collected, you must supply that token or leave part of the payout uninvested.
The relevant test is which balance changed. In SunSwap, collection clears accrued fee balances; the SunSwap DEX does not treat the payout as a new deposit. After collection, your wallet may show more of each token while the position shows the same liquidity amount. Mistaking that wallet increase for position growth would make a payout look like compounding.
For example, suppose you collect both assets intending to enlarge an existing position before more trading occurs. Note its range and the current pool price, then inspect the token amounts quoted for adding liquidity. If the price is outside the range, adding assets to that same range will not make the position active now. It can earn fees again when price returns; using a different range requires a new position.
Collection frequency follows your purpose. If you want tokens in your wallet, collect when the payout is useful. If you want compounding, pair collection with an actual liquidity addition and account for the TRON Energy and other transaction costs of each step. Collecting more often without adding liquidity repeats that overhead. It does not raise your position's share of subsequent fees.
Why Does V2 Look Different?
V2 keeps the liquidity providers' portion of trading fees in pool reserves. Those reserves back LP tokens, the receipt tokens representing a provider's share. As fees remain in the pool, each existing LP token can represent more underlying assets than it otherwise would. The protocol does not mint extra receipt tokens merely because a trade paid a fee.
That produces a different observable result from V3. In V2, look at the underlying assets represented by your LP tokens, rather than expecting the receipt-token count to rise. In V3, look separately at accrued fees, wallet balances after collection, and the position's liquidity amount after an addition. Market price changes can also alter displayed asset amounts and value, so a larger value alone does not prove reinvestment.
Use collection to take a payout and an increase-liquidity transaction to grow a V3 position; the changed liquidity amount tells you whether reinvestment happened.