šŸ›”ļøPerpetual Vault

The vault serves as the counterparty to all trades made on the platform:

  • When traders win (positive PnL), their winnings are received from the vault.

  • When traders lose (negative PnL), their losses are sent to the vault.

Insurance Fund

  • The Insurance Fund acts as a protective layer for the vault in case of positive PnL, aiming to minimize the downward price trend of apUSDC.

  • This fund is managed by an administrator, allowing them to withdraw from and deposit into the vault at any time. Withdrawals from the Insurance Fund can be flexibly used for beneficial strategies, such as buying back ASH, sending to the treasury, and allocating for product R&D.

Value of apUSDC

apUSDC=1+(PnLāˆ’insurance+fee)VaultTotalSupplyapUSDC = 1+ \frac{(PnL - insurance + fee)}{VaultTotalSupply}
APR(30D)=(apUSDCCurrentPriceapUSDCLastMonthPriceāˆ’1)30āˆ—365āˆ—100%APR(30D) = \frac{(\frac{apUSDC_{CurrentPrice}}{apUSDC_{LastMonthPrice}}-1)}{30}*365*100\%
APR(7D)=(apUSDCCurrentPriceapUSDCLastWeekPriceāˆ’1)7āˆ—365āˆ—100%APR(7D) = \frac{(\frac{apUSDC_{CurrentPrice}}{apUSDC_{LastWeekPrice}}-1)}{7}*365*100\%
APR(1D)=(apUSDCCurrentPriceapUSDCYesterdayPriceāˆ’1)āˆ—365āˆ—100%APR(1D) =(\frac{apUSDC_{CurrentPrice}}{apUSDC_{YesterdayPrice}}-1)*365*100\%

According to the formula:

  • If PnL > 0: The vault records a loss, and 100% of this loss is allocated to the reserve, with a priority to use funds from the insurance fund first.

  • If PnL < 0: The vault records a profit, and 100% minus a certain percentage (x%) is allocated to the reserve, where x% is distributed to the insurance fund. The administrator can deposit or withdraw from the insurance fund at any time.

  • Fees: Trading fees that are allocated to the Vault (if any) will be reflected in the apUSDC price as per the outlined formula.

  • Order Execution: Every order that is opened or closed, involving money being received or transferred from the vault, directly reflects on the apUSDC price through PnL and fees (if any)

Withdrawing from the Vault:

  • To initiate a withdrawal, a request must be made, followed by a 7-day cooldown period and a 2-day redemption window after the cooldown ends. This timeframe can be subject to changes.

  • The apUSDC price will fluctuate according to market conditions throughout the cooldown period, and the withdrawal exchange rate is fixed at the moment of redemption (during the 2-day window).

  • Users can still trade apUSDC on DEXs to avoid the cooldown period. There will be an apUSDC/USDC pool created on AshSwap for this purpose.

šŸ“Vault Guide

FAQ

Why is the APR 0%? Does that mean I'm not gaining money or even losing money?

During periods of high volatility, the price of apUSDC can experience significant short-term decreases, leading to a reduced APR. It's crucial to recognize that this reflects only a temporary measure of apUSDC's performance, analyzed on daily, weekly, and monthly intervals. Such fluctuations do not automatically equate to a financial loss. Instead, if the value of apUSDC at the point of withdrawal exceeds its value at the time of your initial deposit, you will realize a financial gain.

Why do I have to wait for several days to claim back my fund?

The primary objective is to mitigate the occurrence of front-running profit and loss fluctuations, while also guaranteeing sufficient liquidity for the exchange.

How can I check my profits for being an LP for the Perpetual Vault?

You can evaluate the price of apUSDC at the time of your deposit against its present value.

The real-time profit value will be available soon.

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