Withdraw

Withdrawing USDC requires LPs to submit a request, wait a variable number of epochs, and complete the withdrawal during the designated window

Before withdrawing their USDC (deposited assets + rewards), LPs must submit a request to withdraw (approvals are programmatic). This initiates a "cooling off" period to prevent potential front-running of withdrawal immediately before the realization of large outstanding trader gains that could negatively impact the value of the LP MM Vault under certain conditions.

While the LP request is pending, OLP tokens are locked inside the user's wallet, and that length depends on the collateralization ratio of the vault. Users must wait a variable number of epochs (between one and three) to withdraw their capital. The more undercollateralized the vault, the more epochs users must wait, up to a maximum of three 3-day epochs.

Withdraw Request

Unlocked deposits can request a withdrawal at any time, subject to a variable cooling-off period of between one and three 3-day epochs:

• if collateralization > 120: 1 epoch (3 days)

• if 110 < collateralization <= 120: 2 epochs (6 days)

• if collateralization <= 110: 3 epochs (9 days)

Withdraw requests must be made within the first 48H of any epoch, and can be withdrawn at the start of the corresponding epoch. The length of the cooling-off period varies entirely programmatically, depending on the collateralization ratio of the Market Making Vault.

If interfacing directly with the user interface rather than smart contracts directly, depositors will see:

• Time Remaining: A countdown clock illustrating the time remaining to request a withdrawal in the current epoch.

• You Will Receive: The number of USDC for which your selected OLP withdraw amount is redeemable for.

• Current Wait Period: The current number of epochs a depositor must wait to withdraw their funds (always between 1 and 3 epochs).

• Redeemable On: The exact date and time at which a user's OLP will be redeemable for USDC, based on the current request and cooling off period length.

Withdrawing

After a withdrawal request has been made, a user will see that pending request appear under the "LP History" tab beneath the LP deposit/withdraw/unlock form. A user will see both the epoch number at which the request was created as well as the epoch number at which the amount is redeemable. When the required cooling-off period has elapsed, the button at the top right of the history form will become clickable. Clicking will initiate a request in a user's wallet to sign a transaction to redeem OLP for USDC.

Once the waiting period has passed, LPs can withdraw during the first 48h out of the 72h of the following epoch. If this window is missed, the withdrawal request is automatically canceled, and a new request must be submitted.

Withdraw Example

In this scenario, the collateralization ratio stays above 120%. The liquidity provider 1 deposits collateral without locking any shares, then submits withdrawal requests during the first two days of epoch X. After waiting through to epoch X+1, LP1 redeems their shares within the first two days of that next epoch.

Withdraw window diagram

Unlocking

Users who lock their OLP tokens receive an NFT representing their locked OLP allocation (deposit + bonus). The OLP tokens are stored into the vault until unlocked by the depositor. He may do so, once the locking period has elapsed, by burning his NFT to receive his OLP including the bonus. Locked deposits must first be unlocked before they can be withdrawn.

Depositors can do so through interactions with the smart contracts directly or via the existing user interface by navigating to the "Unlock" tab within the vault page. An "unlock" button located on the right hand portion of the screen can be clicked, which triggers an approval request in a user's wallet. Once initiated, funds are immediately unlocked and appear under the adjacent "Withdraw" tab.