Arbitrageurs
Portals earn yield by staking deposited tokens in strategies (such as HLP)
These accrued assets can be purchased by anyone with a set amount of PSM
When the value of the Portal’s earned assets exceeds the value of the PSM needed to buy them, it creates an arbitrage opportunity
10% of the PSM used to buy a Portal’s yield is sent to the funding pool, where bToken holders can claim it
Each Portal is created with a setting that enables a fixed amount of PSM which can buy the entire balance of its accrued tokens.
For example, the HLP Portal receives USDC and esHMX by staking users’ HLP. This accrued yield can be purchased by anybody with 100k PSM (this will remain the arbitrage amount for all new and existing Portals for the foreseeable future).
As the value of the USDC and esHMX tokens goes up, it approaches the value of x number of PSM, which creates an arbitrage opportunity. Once the value of the accrued Portal yield exceeds the value of the PSM, a riskless profit can be made by buying the accrued assets.
Additionally, 10% of the PSM used to buy the Portal’s yield is sent to the funding pool, which can then be claimed by bToken holders. Once the bToken holders have all been paid back in full, 100% of the PSM will go to the Portal.
This is an effective means to continue funding the Portal with PSM to pay out to depositors. It’s a predictable arbitrage scenario where the arbitrageur wins by making “free money” while the users win as the Portal can continue paying them PSM tokens.
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