Withdrawing from a Vault

Please see the System Diagram for an overview of the process.

Withdrawing/Redeeming

The user may either:

  • First, burn his Deposit NFTs and receive SVTs, then redeem the SVTs or,

  • Redeem directly by passing in the NFT IDs and the amounts they would like to burn.

There are multiple actors in the withdrawal process:

  • Owner: Address that owns the Smart Vault Shares that are to be redeemed. During withdrawals, the owner of the SVTs is also the person who is required to initiate the transaction.

  • Receiver: The recipient of the Withdrawal NFT.

Process Flow

User redeems shares/SVTs

  • The system does internal bookkeeping and marks the assets to be included in the next Smart Vault Flush.

  • Shares are marked to be picked up in the next DHW cycle.

  • All subsequent deposits and withdrawals are marked for the next Smart Vault Flush.

  • The system mints a Withdrawal NFT (W-NFT) with relevant on-chain metadata.

Smart Vault Flush

  • This is a synchronization point for Smart Vault deposits and withdrawals.

  • Assets are market to be picked up in the next DoHardWork (DHW) cycle.

  • All subsequent deposits and withdrawals are marked to be included in the next Flush.

  • This process is to ensure that all Smart Vault members are treated equally with their shares being distributed fairly,.

  • This process is executed by users.

Asynchronous DoHardWork

This is executed for each individual strategy.

  • Withdraws from or deposits into underlying protocols.

  • Pulls assets that have been deposited by the user from the MasterWallet.

  • Withdraws assets from the underlying Protocols back into the MasterWallet.

  • The time between two DHW instances for a specific strategy should theoretically be within 24 hours.

  • The time to execute DHWs for all strategies within a given Smart Vault takes no longer than 24 hours.

  • Only after all DHWs required for a specific Smart Vault have been completed can we accurately know how many SVTs/shares a user will receive. This is due to slippages and other fees.

  • The system also mints Strategy Share Tokens (SSTs) that are allocated to or claimed by Smart Vaults.

  • This process is executed by a trusted actor/Spool infrastructure.

Once complete, the user can then burn their Withdrawal NFT to claim the withdrawn assets.

Fast Withdraw

Using this process, the user can bypass the Flush/DHW process to withdraw immediately. However, they will need to cover the relevant network transaction costs which can be high.

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