Drops
  • Drops
    • Introduction
  • Governance
    • DOP - Protocol Governance & Ownership
  • Tokens
    • Overview
    • veDOP
      • Emissions Distribution
    • esDOP
      • esDOP parameters
      • esDOP vesting duration
      • Situational examples
  • Loans
    • Overview
    • NFT Lending Pool
      • Liquidation parameters
      • Liquidations
    • Positions Lending Pool
      • Components
      • Using vault markets
      • APY Calculation
    • Interest rates
    • dTokens
  • Tutorials
    • How to borrow against NFT
    • How to repay NFT loan
    • How to lend and earn yield
    • How to use SweepMax
  • SweepMax - Financing
    • Overview
    • Features
    • How does it work?
  • NFT Price Oracle
    • Overview
    • Verifying Sale
    • Extreme outliers removal
    • Probable outliers removal
    • Floor TWAP
  • Links
    • Audits
    • Smart contracts
    • Risks
Powered by GitBook
On this page
  • Supplying and Withdrawing
  • Borrowing and Repaying

Was this helpful?

  1. Loans
  2. Positions Lending Pool

Using vault markets

PreviousComponentsNextAPY Calculation

Last updated 1 year ago

Was this helpful?

Using vault markets is a seamless experience while all the actions are completed in 1 transaction.

Supplying and Withdrawing

When a user supplies the base asset, for example, USDC, it is wrapped into yvUSDC and sent to the Vault Market. While the USDC is in yvUSDC form, it continues to generate yield. Upon withdrawal, the Vault Market unwraps yvUSDC back into USDC, which is then sent to the user.

Borrowing and Repaying

During the borrowing process, the borrowed asset is initially taken out in the form of vault shares. It is then unwrapped into the target asset. For instance, yvUSDC is unwrapped to become USDC. Upon repayment, the USDC is wrapped back into yvUSDC and repaid to the market.