Deposits & Withdrawals
Deposit Options
Upon deposit, a user will be prompted to choose between the two vault types:
jHYPER - Deposited tokens must remain in the protocol for 2 week epochs.
wjHYPER - Will always remain composable.
Depositing is simple:
Connect your wallet with HYPER tokens to the Jones dApp
Make sure you are connected on Blast
Then choose your strategy
*Note that wjHYPER can also be acquired through swapping on Thruster Liquidity Pools.*
Depositing Between Cycles
If a user deposits into jHYPER between two cycles, several things happen.
Internally & Externally:
The user’s HYPER will be locked in jHYPER and converted to vlHYPER.
The user’s position will contribute to the hyperTHRUST APY for the entire vault.
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: jHYPER exhibits a mixed behavior when compared to HYPER, due to the fact that hyperTHRUST yield is streamed continuously while vote incentives are collected every two weeks.
jHYPER users benefit from both systems.
To avoid gaming the system, jHYPER has a time-gated method for withdrawal, along with retention incentives.
A withdrawal delay of two weeks (the time of one jHYPER epoch) will cause the user to miss out on 1 epoch. 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, wjHYPER. Users can withdraw wjHYPER in the same way as jHYPER if they like, but they have the added benefit of an exit option through the Thruster pool.
More information can be found in the 'Withdrawal Methods' section of this documentation.
Cycle Impact on LP/Staking Rewards
The moment in which a user deposits HYPER in the Jones vault, obtains wjHYPER, provides liquidity on Thruster, and then stakes that liquidity on Hyperlock; the user will begin to accrue yield on the amount of pooled wjHYPER regardless of entrance period.
They will also get, as yield from the Hyperlock 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.
Withdrawal Methods
Users will be able to withdraw using two different methods:
1. A token burn - both the jHYPER Vault and the wjHYPER Vault.
2. A liquidity pool swap at the prevailing market rate, at the time of their choosing - only wjHYPER.
The first option will allow users to withdraw from the next epoch’s available liquid HYPER delivered by the strategy, 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.
Withdrawing During a Reward Cycle
When a user signals they want to withdraw, the system will obtain the reference conversion rate of jHYPER / wjHYPER in terms of HYPER.
The vault will then queue up new deposits and/or harvest yields to match the exact amount of HYPER needed for the withdrawals, burn the jHYPER / wjHYPER, and will make it available to the user 2 weeks after they have signaled the request.
Rehypothecation
If a user has already burned their tokens, is in the waiting queue, AND does not want to wait 2 weeks for enough liquid HYPER to become available, 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 wjHYPER token.
They will then be able to immediately exit via Thruster liquidity at the prevailing market rate. This mechanism will allow users who need to get their HYPER 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 back to the liquidity pool as incentives. This means that no user can abuse this mechanism in order to avoid the costs associated with withdrawal.
Last updated