Maker Renewal
Once a position has transitioned to an Expired state, it may be renewed by the owner of the position.
Renewing a position requires some value to be presented by the Maker in order to settle:
Their protocol fee for the period that the position was expired,
Their new protocol fee for new the fixed term, and
Their yield rate penalty
Value can be supplied by the Maker by either:
Supplying (and burning) bUSD, similar to Taker renewal, and/or
Burning some of their original deposit amount.
For v1.0, we define that both Fees and Yield Penalty to be settled from the position’s deposit amount.
We can calculate the value of the Maker’s Yield Penalty by computing their unpenalised yield for the entire period (active plus expired), and subtracting the total adjusted (penalised) yield. This works for both positive and negative yield cases:
Last updated
