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 upfront yield, paid in PSM
To pay upfront yield, Portals are funded by the community before they launch – anyone can fund a Portal to receive future PSM
Staked assets in Portals accrue yield. This yield can be bought with a fixed amount of PSM and replenishes the PSM reserves (and drives 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 yield-bearing assets by enabling users to realize their future yield today.
Users simply deposit a yield-bearing asset into the respective Portal and can instantly receive upfront yield, paid out in PSM. How is this possible? The Portal earns yield over time, but each Portal is funded with PSM before it launches, which bootstraps upfront yield payments.
The yield earned by staked assets in the Portal, for example via lending, is used automatically to buy back PSM and refill the Portal. This process is fully permissionless, efficient and safe at the same time because it is based on open arbitrage.
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 Once a user decides to withdraw their upfront yield, the PE is internally swapped for PSM and withdrawn.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 sharing a single LP: ETH, WBTC, ARB, LINK, USDC, USDC.e.
Funders will fund the LP directly rather than each Portal – as a result, their receipt tokens (bTokens) will accrue 20% of arbitrage deposits from all connected Portals. The shared LP acts as a deep liquidity source for all connected Portals and increases operational efficiency and robustness.
NFTs as depository receipts
NFTs can be minted by stakers as depository receipts.
If someone deposits 100 USDC into a V2 Portal, 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 and composability 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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