Portals
Portals are your gateway to upfront yield to use as you see fit, without running into liquidation risk.
Depositing a yield bearing asset into a Portal unlocks up to 3 months’ worth of upfront yield, paid in PSM
The HLP Portal accepts deposits in HLP and automatically stakes it in HMX to earn yield
Portals are funded by the community before they launch – anyone can fund a Portal to receive future PSM
The PSM which initially funds each Portal bootstraps the funds needed to pay yield upfront while earning from a set strategy (e.g. HLP) over time
Portals’ accrued yield can be bought with a set amount of PSM, which creates periodic arbitrage opportunities (and token demand)
The demand for yield-bearing products in DeFi has grown substantially, with the rise of LSTs, RLTs, DOVs, multi-asset LPs, and more. With Portals, it’s our goal to enhance the functionality of all of these assets by enabling users to realize their future yield today.
Users simply deposit a yield-bearing asset into the Portal and can instantly receive 3 months’ worth of upfront yield, paid out in PSM. As the Portal is live, the duration of redeemable upfront yield grows in the following way:
At launch: available yield = 3 months
1.5 months + 1 second after launch: available yield = 3 months and 2 seconds
2.5 month after launch: available yield = 5 months
1 year after launch: available yield = 2 years
This mechanism gives the Portal time to accrue more assets to ensure that the internal PSM supply isn't in danger of being depleted. The retention of internal assets is also fortified by Portal Energy, which is further explained below.
Currently, users can deposit HLP tokens (the LP token for HMX exchange) into our HLP Portal and receive HLP’s native yield upfront. How is this possible? The Portal earns HLP’s yield over time, but each Portal is funded with PSM before it launches, which bootstraps upfront yield payments.
You can find a tutorial on our HLP Portal here. We currently have several additional Portals-related features in the works, which you can find in our roadmap.
While Portals’ primary use case is upfront yield, there are currently two other potentially-lucrative ways to interact with them:
Funders provide initial liquidity for Portals by depositing PSM tokens, and are rewarded with bTokens, which can later be burned for PSM
Arbitrageurs can deposit PSM into a Portal to “buy out” a Portals internal yield (for the HLP Portal, this would be the USDC it receives from the HLP vault)
Another distinguishing feature of Portals is the fact that they don't rely on external liquidity. Instead, all liquidity is contained in an internal LP consisting of PSM and a virtual asset called Portal Energy (PE).
PE begins accruing after a user makes a deposit, and can be thought of as the time value of staked assets. Once a user decides to withdraw their upfront yield, the PE is internally swapped for PSM and withdrawn.
Portals v2
Portals v2 maintains the same roles as v1 – depositors, funders, and arbitrageurs – while introducing multiple upgrades from the v1 architecture. The two most important changes in v2 are:
All v2 Portals will be connected to a shared Liquidity Pool (LP)
There will be six v2 Portals to start (ETH, WBTC, ARB, LINK, USDC, USDC.e), with the potential to add more over time. These six (as well as future Portals) will be connected to a shared LP.
Funders will fund the LP directly rather than each Portal – as a result, their bTokens will accrue 10% of arbitrage deposits from all connected Portals. The shared LP acts as a deep liquidity source for all connected Portals and guarantees liquidity for new Portals.
NFTs as depository receipts
NFTs can be minted by depositors as depository receipts.
If someone deposits 100 USDC into a Portal on v2, and later adds another 100 USDC to their existing deposit, they can mint an NFT representing a 200 USDC deposit. However, if the user mints the NFT already after the first 100 USDC deposit, the NFT will represent this 100 USDC deposit. Minting the NFT will always represent the entirety of the current stake of the user.
This increases capital availability/efficiency by allowing yield-earning positions to potentially be used elsewhere in DeFi and allows locked stakes to be transferred between wallets.
You can find more information on Portals in the following pages:
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