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Deposits & Withdrawals
Upon deposit, a user will be prompted to choose between the two vault types:
- jAURA - Deposited tokens must remain in the protocol for 2 week epochs.
- wjAURA - Will always remain liquid via liquidity pools.
Depositing is simple, connect your wallet with AURA tokens to the Jones dApp on Ethereum Mainnet, and then choose your strategy. Note that wjAURA can also be acquired through Balancer Liquidity Pools.
If a user deposits into jAURA between two cycles, several things happen.
Internally & Externally:
- 1.The user’s AURA will be locked in jAURA and converted to vlAURA.
- 2.The user’s position will contribute to the auraBAL APY for the entire vault.
- 3.Since the user’s position was locked after the snapshot but before the new voting round, they will not contribute to or receive vote incentives from the vault until the next epoch.
Implication: jAURA exhibits a mixed behavior when compared to AURA, due to the fact that auraBAL yield is streamed continuously while vote incentives are collected every two weeks.
jAURA users benefit from both systems.
To avoid gaming the system, jAURA has a time-gated method for withdrawal along with retention incentives.
A withdrawal delay of two weeks (the time of one jAURA epoch) will cause the user to miss out on 1 voting round. Upon final withdrawal, Retention incentives of 3% are applied, 1% of which is redistributed back to the vault. This puts an additional economic barrier up against gamified strategies of entering, collecting, and exiting the vault in a small time frame.
Of course, if users determine that liquidity is more important, they can opt for the liquid wrapped version, wjAURA. It has the same withdrawal mechanism on the Jones dApp, but has the added benefit of an exit option through our Balancer 80-20 Pool.
More information can be found in the 'Withdrawal Methods' section of this documentation.
The moment in which a user deposits AURA in the Jones vault, obtains wjAURA, provides liquidity on Balancer, and then stakes it on Aura; the user will begin to accrue yield on the amount of pooled wjAURA regardless of entrance period.
It will also get, as yield from the Aura pool, the emissions derived from 10% of vote incentives from the previous round; proportional to the moment over the 2 week period in which the user deposits into the pool.
Users will be able to withdraw using two different methods:
1. A liquidity pool swap at the prevailing market rate, at the time of their choosing
- Only available for wjAURA.
2. A token burn
- Available for both the jAURA Vault and the LSD wjAURA Vault.
The latter option will allow users to withdraw from the next epoch’s available liquid AURA inside of the vault, with one epoch being 2 weeks.
This system is on a first-come, first-serve basis.
Once a user burns their tokens, it is up to them to make sure they withdraw promptly, or they may have to wait until additional liquidity becomes available at the next unlock. This means a user could potentially face a prolonged period where they are not able to withdraw, despite having burned their tokens.
When a user signals they want to withdraw, the system will obtain the reference conversion rate of jAURA / wjAURA in terms of AURA.
The vault will then queue up new deposits and/or the harvest yields to match the exact amount of AURA needed for the withdrawals, burn the jAURA / wjAURA, and will make it available to the user 2 weeks after they have signaled the request.
If a user has already burned their tokens, is in the waiting queue, AND does not want to wait 2 weeks / there is not enough liquid AURA available for that specific user to withdraw (first-come-first-serve basis), a rehypothecation option can allow them to re-enter the vault again without delay.
If a user selects this option, they will exit the waiting queue and be given the wrapped version of the LSD Vault - the wjAURA token.
They will then be able to immediately exit via the LP pools at the prevailing market rate. This mechanism will allow users who need to get their AURA back right away to exit at their convenience through the liquidity pool.
To avoid gaming the system from the act of moving from an illiquid token to a liquid one, a rehypothecation incentive of 7.5% of the total amount will be applied. That incentive flows directly to the liquidity pool. This means that no user can abuse this mechanism in order to avoid the costs associated with the liquidity pool.