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
The primary user of Portals is the depositor who’s 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.
In our HLP Portal, users deposit HLP tokens, and the Portal automatically stakes them in HMX and earns the HLP return. The depositor can then withdraw a portion of their yield upfront in the form of PSM tokens. After withdrawing upfront yield, their deposit is locked until the Portal earns the amount of yield that they withdrew. So, if a depositor withdraws 3 months’ worth of yield upfront, their tokens will be locked for 3 months.
Upfront Yield and Early Withdrawals
One way to think of Portals’ upfront yield is as if the depositor is depositing “cumulative time.”
For example, if you deposit 100 HLP for 3 months, you’d have 300 “cumulative 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).
So, on a high-level basis, the depositor deposits 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:
Initial funders who provide funding to the Portals before they launch
Arbitrageurs who see a mismatch between PSM’s market value and its value within the Portal
We’ll go over the initial funders first.
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