Deposits & Redemptions
rHYPURR uses an asynchronous deposit and redemption system to ensure fair pricing for all users. This guide explains how to deposit WHYPE to receive vault shares and how to redeem shares back to WHYPE, along with how the automated keeper bot processes your requests.
How Deposits Work
When you deposit WHYPE into rHYPURR, you're submitting a request that will be processed after the next NAV update. This ensures you receive a fair share price based on the vault's actual asset value at the time of your request.
Your Steps
1. Approve WHYPE
First-time depositors must approve the vault contract to spend your WHYPE tokens. This is a one-time transaction.
2. Submit Deposit Request
Enter the amount of WHYPE you want to deposit and submit your request. The vault contract transfers your WHYPE immediately and tags your request with the current epoch.
3. Wait for Processing
Your request enters a queue. After the next NAV update (typically within an hour), the keeper bot will process your deposit automatically.
4. Receive Your Shares
Once processed, rHYPURR shares are automatically minted to your wallet. No additional action required—check your wallet balance to see your new shares.
Behind the Scenes: Bot Processing
After NAV is updated, the keeper bot automatically processes deposits in FIFO (First In, First Out) order:
→ NAV Snapshot: Uses the NAV from the epoch snapshot when your request was submitted, ensuring fair pricing
→ Fee Deduction: Applies the deposit fee (typically 0.3%) and sends it to the protocol treasury
→ Share Calculation: Calculates shares using the formula:
shares = (net_assets × 10¹⁸) ÷ NAV_per_share→ Minting: Mints rHYPURR shares directly to your designated receiver address
→ Liquidity Sweep: If vault WHYPE exceeds the configured threshold, excess liquidity is automatically swept to the vault manager for NFT strategy deployment
How Redemptions Work
When you redeem rHYPURR shares, you're requesting to burn your shares and receive WHYPE back at the current NAV price. Like deposits, redemptions are processed asynchronously after the next NAV update.
Your Steps
1. Submit Redemption Request
Enter the number of rHYPURR shares you want to redeem. The vault contract immediately transfers your shares to itself (held in escrow) and tags your request with the current epoch.
2. Wait for Processing
Your request enters the redemption queue. After the next NAV update, deposits are processed first, then the bot processes redemptions in FIFO order.
3. Receive Your WHYPE
Once processed, WHYPE is automatically sent to your wallet. If vault liquidity is limited, you may receive a partial redemption (see below).
Behind the Scenes: Bot Processing
The keeper bot processes redemptions after deposits are complete:
→ NAV Snapshot: Uses the epoch NAV to calculate how much WHYPE you should receive
→ Payout Calculation: Calculates using:
payout = (shares × NAV_per_share) ÷ 10¹⁸→ Liquidity Check: Verifies the vault has sufficient WHYPE. If not, large redemptions may be funded from the vault manager if needed
→ Fee Deduction: Applies the redemption fee (typically 0.5%) and sends it to the protocol treasury
→ Token Transfer: Sends net WHYPE to your designated receiver address and burns the redeemed shares
Automatic Liquidity Management
The vault and bot work together to maintain optimal liquidity for redemptions while maximizing capital efficiency for the NFT strategy.
💧 Liquidity Sweeps
After processing deposits, if the vault holds more WHYPE than the configured threshold, excess liquidity is automatically swept to the vault manager.
Purpose: Maximizes capital deployment in the NFT strategy while maintaining a reserve for immediate redemptions.
🚰 Funding Large Redemptions
When redemption requests exceed vault reserves, the vault manager can transfer WHYPE to the vault contract to fund withdrawals.
How: The vault manager sells NFTs or uses existing HYPE reserves to ensure redemption liquidity is available.
Partial Redemptions
In rare cases where vault liquidity is insufficient to fulfill all pending redemptions, your request may be partially fulfilled.
How Partial Redemptions Work
The bot processes redemptions in FIFO order until vault liquidity is depleted
If your request is at the head of the queue but liquidity is limited, you receive a partial redemption (must meet the minimum partial threshold)
Your request stays in the queue with remaining shares still pending
As more liquidity becomes available (from new deposits or vault manager transfers), your partial request is fulfilled further
Important: Due to FIFO ordering, no other redemptions can be processed until your partial redemption is fully completed
Avoiding Partial Redemptions
Partial redemptions are rare and typically occur only during periods of high redemption volume or market stress. Monitor vault liquidity metrics before submitting large redemption requests.
Processing Timeline
Typical Processing Flow
0:00 - Submit Request
You submit a deposit or redemption request. It's tagged with the current epoch and enters the queue.
~1h - NAV Update
Keeper calculates and submits new NAV on-chain, incrementing the epoch counter. Your request's epoch is now finalized.
~1h - Deposits Processed
Bot processes all pending deposit requests from finalized epochs in FIFO order. Shares are minted and excess liquidity is swept.
~1h - Redemptions Processed
Bot processes pending redemption requests in FIFO order. WHYPE is sent to users and shares are burned.
Fees
Deposit Fee
A small fee is charged on deposits to cover protocol operations and discourage rapid entry/exit strategies.
Current rate can be found in the Technical Specifications table on the rHYPURR Overview page.
Redemption Fee
A small fee is charged on redemptions to cover protocol operations and ensure long-term vault stability.
Current rate can be found in the Technical Specifications table on the rHYPURR Overview page.
Important Notes
ℹ️ FIFO Processing
All requests are processed in strict First In, First Out order. Earlier requests are always processed before later ones.
ℹ️ No Cancellations
Once submitted, deposit and redemption requests cannot be cancelled. They will be processed at the next available opportunity.
ℹ️ Fair Pricing Guaranteed
The asynchronous system ensures you receive exactly the NAV price that was current when your request was submitted—no front-running or price manipulation possible.
ℹ️ Automatic Processing
You don't need to take any action after submitting a request. The bot automatically processes everything and sends tokens directly to your wallet.
Ready to Invest in rHYPURR?
Learn more about how the vault works or start your first deposit today.
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