Deposit and Withdrawals

Deposits

When users deposit Principal Tokens into the vault, they receive a Positional Token representing their position. The Positional Token is yield-bearing, meaning that the value of the position will automatically be reflected in the redemption price.

Deposits are handled in the smart contract via the deposit and mint functions. Once a user receives their Receipt Tokens, they may use transfer and transferFrom to freely transfer the tokens in the respective Receipt Chain.

Withdrawals

Currently, there are two ways to withdraw funds from MoreMarkets:

• In-protocol "unwrap" withdrawal

• Solver based withdrawal

In Protocol vs Solver based withdrawal

When a Positional Token holder wants to withdraw their funds from the MoreMarkets, they need to put their Positional Token into the Principal Chain’s vault. The withdrawal request gets into a 'global queue' that is publicly available for anyone to see. The Protocol first looks internally to available capital that is not allocated in the vaults to solve the withdrawal request. If there is enough capital, the protocol triggers an 'in-protocol withdrawal flow'.

If there is not enough capital in protocol vaults or all positions are allocated, any solver who wants to fulfill the withdrawal request can offer what the withdrawal wants and fulfill the withdrawal request.

If there is no solver until time of expiry withdrawal request gets cancelled.