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add spacing to faqs, add faq about LP positions. #456

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Oct 19, 2023
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add spacing to faqs, add faq about LP positions. #456

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95 changes: 68 additions & 27 deletions apps/hyperdrive-trading/src/ui/onboarding/FAQ/FAQ.tsx
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Original file line number Diff line number Diff line change
Expand Up @@ -11,22 +11,28 @@ export function FAQ(): ReactElement {
title={<span className="text-h6">How can I get fixed rates?</span>}
description={
<span>
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&rsquo;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&rsquo; 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. <br />
<br />
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]&rsquo;s value
at maturity are known upfront, which results in a fixed rate of
return. <br />
<br />
Opening longs has an immediate impact on the market.
hy[Token]&rsquo;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. <br />
<br />
Users can also take speculative long positions. Read our docs to
learn more about{" "}
<a
className="underline"
href="https://delv-tech.notion.site/Position-Types-249d2fc0f16847c283b6f4df00df9bd5"
>
Hyperdrive&rsquo;s Position Types
</a>
.
</span>
}
/>
Expand All @@ -35,15 +41,17 @@ export function FAQ(): ReactElement {
description={
<span>
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&rsquo;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]&rsquo;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&rsquo;s held. <br />
<br />
Opening a short causes the market price of hy[Token] to decrease,
while closing a short has the inverse effect. <br />
<br />
Users can take speculative short positions or use shorts for hedging
other investments. Read our docs to learn more about{" "}
<a
className="underline"
href="https://delv-tech.notion.site/Position-Types-249d2fc0f16847c283b6f4df00df9bd5"
Expand All @@ -63,10 +71,11 @@ export function FAQ(): ReactElement {
description={
<span>
Liquidity providers (LPs) take potential revenue from 3 different
sources: <br /> - Trading fees from Longs and Shorts being opened
sources: <br /> - Trading fees from longs and shorts being opened
and closed by traders. <br /> - Variable rate on their idle capital
being deployed to the underlying yield source. <br /> - Profit (or
loss) resulting from taking the other side of traders’ positions.
<br />
Furthermore, LP capital isn&rsquo;t tied to a specific maturity
date, so these benefits remain until the funds are withdrawn by the
LP. <br /> Learn more about{" "}
Expand All @@ -76,18 +85,19 @@ export function FAQ(): ReactElement {
>
LP Profitability
</a>
.
</span>
}
/>
<Disclosure
title={
<span className="text-h6">
Can I close my position before maturity?
Can I close my long/short/LP position before maturity?
</span>
}
description={
<span>
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{" "}
<a
href="https://delv-tech.notion.site/AMM-Checkpoints-11eefd1e09974551949803e16fe48afa"
Expand All @@ -99,11 +109,13 @@ export function FAQ(): ReactElement {
them to the AMM at the current market price. In other words,
positions that are closed early won&rsquo;t get the initially
expected rate of return, since their exit value depends on market
activity. Liquidity Provider (LP) positions don&rsquo;t have a
maturity date, so LP funds can be withdrawn at any time as long as
they&rsquo;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
activity. <br />
<br />
Liquidity Provider (LP) positions don&rsquo;t have a maturity date,
so LP funds can be withdrawn at any time as long as they&rsquo;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{" "}
<a
href="https://delv-tech.notion.site/LP-Shares-9d3d21330909494d83608eddf7d518c5"
Expand All @@ -115,6 +127,35 @@ export function FAQ(): ReactElement {
</span>
}
/>
<Disclosure
title={<span className="text-h6">How do LP positions work?</span>}
description={
<span>
You open an LP position by providing base asset to the AMM. This
increases the AMM&rsquo;s capacity for longs and shorts. LP capital
is then used to back long and short positions opened by traders.
<br />
<br />
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. <br />
<br />
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. <br />
<br />
Learn more in the{" "}
<a
href="https://delv-tech.notion.site/LP-Shares-9d3d21330909494d83608eddf7d518c5"
className="underline"
>
LP Shares
</a>{" "}
section of our docs.
</span>
}
/>
</div>
);
}