diff --git a/apps/hyperdrive-trading/src/ui/onboarding/FAQ/FAQ.tsx b/apps/hyperdrive-trading/src/ui/onboarding/FAQ/FAQ.tsx index 14aec8c78..917d4e5e4 100644 --- a/apps/hyperdrive-trading/src/ui/onboarding/FAQ/FAQ.tsx +++ b/apps/hyperdrive-trading/src/ui/onboarding/FAQ/FAQ.tsx @@ -11,22 +11,28 @@ export function FAQ(): ReactElement { title={How can I get fixed rates?} description={ - By opening a Long and holding it to maturity. Opening a long - position in Hyperdrive implies purchasing Longs at a discount. These - tokens are redeemable for their full face value at maturity. The - market price you pay and the Long’s value at maturity are - known upfront, which results in a fixed rate of return. Opening - Longs has an immediate impact on the market. The Longs’ market - price increases, which means the fixed rate decreases. Conversely, - closing Longs has the immediate impact of decreasing the market - price and increasing the fixed rate. Users can also take speculative - long positions. Read our docs to learn more about{" "} + By opening a Long and holding it to maturity.
+
+ Opening a long position in Hyperdrive implies purchasing hy[Token] + at a discount. hy[Token] is redeemable for its full face value at + maturity. The market price you pay and the hy[Token]’s value + at maturity are known upfront, which results in a fixed rate of + return.
+
+ Opening longs has an immediate impact on the market. + hy[Token]’s market price increases, which means the fixed rate + decreases. Conversely, closing longs has the immediate impact of + decreasing the market price and increasing the fixed rate.
+
+ Users can also take speculative long positions. Read our docs to + learn more about{" "} Hyperdrive’s Position Types + . } /> @@ -35,15 +41,17 @@ export function FAQ(): ReactElement { description={ Simply put, a short is the opposite of a long. Opening a short - implies purchasing Short tokens at their market price which is the - same as the Long token’s discount (i.e., the fixed rate - applied to the position size). Shorts accrue variable interest (APY) - on the full size of the position being shorted. Opening a Short - causes the market price of Shorts to increase (which also means the - market price of Longs decreases), while closing shorts has the - inverse effect. Users can take speculative short positions or use - Shorts for hedging other investments. Read our docs to learn more - about{" "} + implies short-selling hy[Token] at its current market price, thus + paying an amount equivalent to the hy[Token]’s discount (i.e., + the fixed rate applied to the position size) upfront, while accruing + the variable interest (APY) on the full size of the position being + shorted for the duration it’s held.
+
+ Opening a short causes the market price of hy[Token] to decrease, + while closing a short has the inverse effect.
+
+ Users can take speculative short positions or use shorts for hedging + other investments. Read our docs to learn more about{" "} Liquidity providers (LPs) take potential revenue from 3 different - sources:
- Trading fees from Longs and Shorts being opened + sources:
- Trading fees from longs and shorts being opened and closed by traders.
- Variable rate on their idle capital being deployed to the underlying yield source.
- Profit (or loss) resulting from taking the other side of traders’ positions. +
Furthermore, LP capital isn’t tied to a specific maturity date, so these benefits remain until the funds are withdrawn by the LP.
Learn more about{" "} @@ -76,18 +85,19 @@ export function FAQ(): ReactElement { > LP Profitability + . } /> - Can I close my position before maturity? + Can I close my long/short/LP position before maturity? } description={ - Yes, Longs and Shorts can be closed at any time (except in rare + Yes, longs and shorts can be closed at any time (except in rare cases, learn more in the{" "} +
+ Liquidity Provider (LP) positions don’t have a maturity date, + so LP funds can be withdrawn at any time as long as they’re + not currently backing other long or short positions; if they are, + LPs will receive Withdrawal Shares that represent pending + withdrawals that still share the same benefits of regular LP capital. Learn more in the{" "} } /> + How do LP positions work?} + description={ + + You open an LP position by providing base asset to the AMM. This + increases the AMM’s capacity for longs and shorts. LP capital + is then used to back long and short positions opened by traders. +
+
+ LPs can withdraw their capital at any time, but if part of it is + currently backing open positions, the AMM will temporarily keep that + part and give Withdrawal Shares to the LP until there is enough idle + liquidity available to replace that capital.
+
+ When long or short positions are closed, the liquidity used to back + them is freed up and used to buy back Withdrawal Shares, at which + point LPs can complete their pending withdrawal process.
+
+ Learn more in the{" "} + + LP Shares + {" "} + section of our docs. + + } + /> ); }