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In a general sense, a compressor is sort of an automatic level control... It evens out peaks or transients, and as the signal fades off, it will raise the volume to increase perceived sustain. Depending on how it is set, (best used subtle) it can take the noise floor and raise it to signal level if there is no signal to be processed. So use it sparingly.
Basically it keeps the signal constant, even or consistant.
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