Deposits and Withdrawals

Deposits in Ouija's liquidity pool can be made using any token accepted by the lending protocol as collateral. When a user deposits tokens, they receive LP tokens in return, representing their share in the pool. The amount in LP returned is also tied to the type of collateral asset deposited, the protocol favours LPs who deposit tokens that have a higher BP than those that are lower. For example: USDC would return more LP tokens than wBTC, for the same dollar value deposited. See the formula below to see how the LP mint function is derived.

Withdrawals are also flexible, allowing users to burn their LP tokens and receive their preferred tokens in return. The withdrawal process takes into account the current pool state, ensuring that enough capital remains in the pool at all times. However, at time where the pool is not at an optimum HF state, users might only be able to withdraw (without capital loss due to slippage) lower BP weighted tokens as to not disbalance the pool further. At pool equilibrium, users can withdraw any token accepted as collateral by the lending protocol, providing them with more choices and flexibility.