Withdraw

In Vanna Protocol, liquidity providers (LPs) have the flexibility to withdraw their supplied assets from the lending pools whenever they choose, as long as the assets are not actively being borrowed by traders. When LPs withdraw their assets, they redeem their vTokens in exchange for their original deposit and any accrued interest or liquidation penalties.

How the Withdrawal Process Works

• Initiating a Withdrawal: LPs can initiate a withdrawal request at any time by redeeming their vTokens. If the supplied assets are available (i.e., not currently being borrowed), the withdrawal is processed instantly

• Partial Withdrawals: If a portion of the supplied assets is still in use by traders, LPs can redeem part of their vTokens and withdraw the available balance immediately. The remaining balance will become available once the traders repay or are liquidated

• Accrued Interest & Penalties: When withdrawing, LPs receive not only the principal amount they supplied but also the interest and any liquidation penalties accrued. vTokens make it easy to track these earnings.

No Lock-In Period

Vanna’s system is designed to offer maximum flexibility to LPs. There is no mandatory lock-in period for supplying assets, meaning LPs can redeem their vTokens and withdraw their funds whenever they need to, provided the assets are available in the pool.

Security of Withdrawals

The isolated nature of Vanna’s lending pools ensures that LPs can confidently withdraw their assets, without concerns about impermanent loss or systemic risks. Even in the event of a pool exploit or trader liquidation, LPs can still access their funds in unaffected pools, redeeming their vTokens for the underlying assets.

By providing full flexibility and security, Vanna allows LPs to withdraw their supplied assets whenever needed, ensuring that their earnings and capital remain under their control at all times.