Deposit / Withdraw

USDB deposits and the bUSDB token.

Deposit

Depositing USDB in Bloom vaults is as easy as going to the "Vault" tab on our website (https://www.bloom.trading/vault). LPs deposit USDB in the LP vault, and automatically get access to market-making yields, Blast points and Bloom points.

Once an LP deposits USDB, they get back bUSDB, an ERC-4626 token representing their ownership in the vault. bUSDB auto-compounds over time from fees, and automatically accrues Blast developer points, and Bloom points.

Please note that bUSDB compared to USDB is not 1:1 as the share price can fluctuate based on yield, fees, and trader PnL. You can always plug in and view how much bUSDB you're getting from your USDB before you deposit into the vault.

LPs can see their portfolio analytics and rewards on the "Overview" tab, and deposit from the "Deposit/Withdraw" tab.

Withdraw

Withdrawals can be made from the same tab as deposits. When an LP withdraws their capital, they get back their principal, plus any accrued earnings (net of a traders' PnL). Additionally, there may be fees on withdrawals based on the vault's buffer ratio. What is buffer ratio?

Buffer ratio: The vault buffer ratio tracks how much buffer the vaults have to sustain any negative impacts from a traders PnL. Vault buffer ratio of 100% indicates that LPs currently have zero buffer against open PnL (i.e a traders' profits that haven't been realized). Similarly, vault buffer of 110% indicates that a trader can draw down 10% of the vault's value, before an existing LP starts losing their principal (note - this is an oversimplification, and does not apply to all LPs equally as LPs enter and leave the protocol at different times).

$$Vault\ Buffer \ Ratio = \frac{Open\ \ PnL \ + Principal\ +\ Earnings}{Principal}$$

Where:

A. Open PnL = Net Profit / loss from open trades on any given day

B. Principal = The principal value of the USDB deposited by all LPs in the vault

C. Earnings = The estimated earnings accruing to all existing protocol LPs (including all trading fees and closed PnL)

Note: Vault buffer ratio is a daily snapshot, and fees are only charged on withdrawal when buffer ratio is low. Other times, it is completely free to withdraw. The fees are also tiered based on the buffer ratio of the vault as shown below

Vault Buffer Ratio	Fee
< 90%	2.50%
[90%, 95%)	1.50%
[95%, 100%)	1.00%
[100%, 105%)	0.25%
[105%, 110%)	0.10%
>= 110%	0.00%