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When withdrawing liquidity from the bluna vault, only the luna is returned. This could open us up to a bank run if everyone withdraws.
Either we repay in luna and bluna according to their share of the pool or the war-chest steps in and provides luna to the withdrawer in exchange for the bluna.
Edit: lp share does include bluna
The text was updated successfully, but these errors were encountered:
Seen your edit, does this still need to be looked into ? Had a look at try_withdraw_liquidity in bLuna vault. Something if the current solution is not enough is we could potentially swap bLuna for Luna of course this has some potential for loss. Open to thoughts.
Yeah the current implementation is in line with the "withdraw profits immediately" ethos. But it opens us up to risks which we should address. If only bluna is left in the pool, other depositors are f*cked. Even if this wouldn't occur naturally it creates an attack vector i'm not comfortable with.
Those two proposed solutions still hold.
SebastianJer7
changed the title
[bluna-vault] Withdrawing tokens excludes the bluna held in the vault.
[bluna-vault] Finalize Architecture in Luna/bLuna Vault to include sustainable withdrawal mechanics
Oct 18, 2021
Howard and I need to work on the overall architecture of the luna/bluna vault, including the arb strategy, luna/bluna lp'ing, and withdrawal mechanics. This all connects with the bots and how they function so Ivan should probably be part of the conversation as well. This is one of the major issues that still needs sorted out for our V1.
When withdrawing liquidity from the bluna vault, only the luna is returned. This could open us up to a bank run if everyone withdraws.
Either we repay in luna and bluna according to their share of the pool or the war-chest steps in and provides luna to the withdrawer in exchange for the bluna.
Edit: lp share does include bluna
The text was updated successfully, but these errors were encountered: