Depositors

• Depositors can instantly withdraw upfront yield in the form of PSM

• The more upfront yield the depositor claims, the longer they must wait to withdraw their deposit

• Early withdrawals are enabled, but increase the amount of time until a total withdrawal can be made

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The primary user of Portals is the depositor who is looking to take advantage of upfront yield opportunities, such as locking in a high yield rate or getting access to leverage without risk of liquidation. Upfront yield is paid in PSM by the Portal.

In our HLP Portal, users deposit HLP tokens, and the Portal automatically stakes them in HMX and earns the HLP return (USDC.e). The V2 Portals enable upfront yield for staking ETH, WBTC, ARB, LINK, USDC, USDC.e and deposits these tokens in the lending pools of Vaultka.

Upfront Yield and Early Withdrawals

One way to think of Portals’ upfront yield is as if the depositor is withdrawing “time value.”

For example, if you deposit 100 HLP for 3 months, you’d have 300 “time value months” that you have to wait before you withdraw your last HLP. But in the meantime, you can withdraw a portion of your assets at any point.

Say you withdraw half the available PSM tokens immediately. The total still needs to equal 300 months, so each of the 50 remaining HLP in the Portal needs to be there for 6 months (6 * 50 = 300).

On a high-level, the depositor stakes HLP and receives PSM from a Portal. But how did that PSM get in the Portal in the first place? Through one of two sources:

1. Initial funders who provide funding to the Portals before they launch

2. Arbitrageurs who see a mismatch between PSM’s market value and its value within the Portal

We’ll go over the initial funders first.