Deposting & Redeeming

Depositing

By depositing your USD liquidity into the perpetual liquidity pool, you receive a proportional amount of CPLT which reflects your share of the perpetual liquidity pool.

To mint CPLT, you must

1. Bridge USDC from any ecosystem to Carbon, which will be auto-converted to the Grouped USD token.

2. Contribute USD liquidity to the perpetual liquidity pool

A fee may apply for depositing USD liquidity / minting LP tokens.

Supply Cap

USDⒼ deposits are generally available unless the supply cap is reached, which is a precautionary measure put in place to avoid having too many deposits during the initial phase.

Redeeming

Liquidity providers can withdraw their USD liquidity from the perpetual liquidity pool (and return the LP tokens) so long as they pay the relevant withdrawal fees, and sufficient funds are available.

A fee may apply for withdrawing USD liquidity / redeeming LP tokens.

Waiting Time

The waiting time for withdrawals is dependent on whether sufficient funds are available:

1. Sufficient Funds Available

To ensure the security of the perpetual liquidity pool, immediate withdrawal of assets is not permitted; As withdrawals are processed only at the end of each block, there will always be a waiting time of one block (~1.6s).

This protects the perpetual liquidity pool against sudden liquidity drains, and prevents stakers from front-running PnL changes.

2. Insufficient Funds Available

If the funds are currently being utilized as liquidity, there may be insufficient available funds in the perpetual liquidity pool for you to withdraw.

When the utilization rate of the perpetual liquidity pool is high, a high borrow fee will be charged to encourage traders to close their positions. Once the positions are closed, more funds will become available for withdrawal.