Vermicomposting involves degradation of organic matter into fertile manure by using special type of earthworms called as red worms. The nutrient rich manure is called as vermicompost. The process of preparing manure with the help of red worms is called vermicomposting. The red worm is a type of earthworm that lives in the soil rich in organic matter. Organic soils are rich in nitrogen and carbon with plenty of moisture and microbes.