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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.
Under critical situations, the vault starts to create a buffer with those funds, further protecting users' funds and the protocol from future PnL abnormalities. Specifically, a portion of USDC held within the vault will be set aside and will not impact the exchange rate between apUSDC and USDC. This ensures that when depositors decide to withdraw their USDC, there will be a sufficient reserve within the vault to facilitate these withdrawals without any issues. In case the buffer mechanism is employed, we will ensure that our vault liquidity providers are promptly informed.
To better approximate the real collateral ratio, and to minimize risks for the protocol, the vault follows an epoch system for capturing snapshots of open PnL. Open PnL represents the aggregate PnL of all open trades at the time of the snapshot.

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.
  • The fund is managed by an administrator, allowing them to withdraw from and deposit into the vault at any time.
  • Withdrawals from the vault 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

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.
  • Trading Fees: We are currently not allocating any platform fees to the Perpetual Vault. Future changes to this policy 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.

FAQ

Why i have to wait for a while to claim my withdraw?
The primary objective is to mitigate the occurrence of front-running profit and loss fluctuations, while also guaranteeing sufficient liquidity for the exchange.
How i can know my profit while depositing tokens to the Vault?
You can check it non-directly in 2 ways:
  • The Vault APR
  • The amount when you try withdrawing
The real-time profit value will be available soon.
Last modified 2d ago