Withdrawal Management
Last updated
Last updated
The process of withdrawals is managed by the WithdrawalManager. The withdrawalManager holds custody of users' LP tokens and allows them to withdraw at specified time intervals - Withdrawal Window after waiting a minimum of a full Withdrawal Cycle. Users' withdrawal requests are grouped into cycles so that pro-rata distributions of available cash can be performed.
If a user misses their withdrawal window or wishes to modify their withdrawal request, they have several options to update it.
Purpose: For users looking to adjust the amount of shares in their withdrawal request, the modify action provides the means to either increase or decrease the desired amount.
How to Perform:
To increase the number of shares, call requestRedeem(n) with n specifying the new total amount of shares desired.
To decrease the number of shares, call removeShares(n), where n reflects the number of shares to be removed from the request.
Purpose: Users who wish to cancel their withdrawal request entirely can use this action to remove all associated shares, effectively nullifying the request.
How to Perform: Execute removeShares(n) to cancel the request, where n is the total amount of shares initially requested for withdrawal.
In all cases, the withdrawal request will be treated as a normal withdrawal request and will have to wait for a minimum of a full withdrawal cycle before the funds can be withdrawn.
Users withdrawing in the same withdrawal window may experience different exchange rates if they exchange at different time points.
When the actual withdrawal is performed, the amount of funds withdrawn is calculated by converting the shares requested for withdrawal into funds using the current exchange rate.
During each withdrawal window, the total amount of funds required to satisfy all withdrawals will be continuously locked using the current exchange rate. These locked liquidity can not be used by the Pool Admin for funding.
When there is insufficient liquidity to satisfy all withdrawals, the available amount of liquidity will be proportionally distributed between users based on the size of their withdrawals. For example, if there is only enough assets to satisfy 50% of all withdrawals, each user can only withdraw 50% of their requested amount. Also, withdrawals requests that can not be fulfilled due to insufficient liquidity will be automatically forwarded to the next withdrawal window without any additional delays.
The formula related to the distribution can be written as follows
where
The Pool Admin can update update the duration of each Withdrawal Cycle and/or Withdrawal Window. This change will only take effect after the current and two following Withdrawal Cycles.
