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
The user initiates the redemption process.
SmartVault Flush is invoked. Vault Flush Implementation
DHWs run for all Vault Strategies. DoHardWork (DHW) Implementation
Vault Sync runs. Vault Sync Implementation
The user claims the withdrawn assets.
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Once complete, the user can then burn their Withdrawal NFT to claim the withdrawn assets.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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