Withdraw
Withdraw eligible assets to supported chains
Last updated
Withdraw eligible assets to supported chains
Last updated
Users can easily withdraw their collateral-enabled assets in full if there is no outstanding debt and the collateral is not actively used for borrowing. If a user has incurred debt, they can withdraw collateral above a threshold that would trigger liquidation, indicated by the Health Factor dropping below 1.
Withdrawing lowers your health factor, raising the risk of liquidation.
When no sufficient liquidity is available within the protocol to facilitate a withdrawal, a user may need to wait for additional liquidity from either suppliers or repayments from borrowers to be able to withdraw.
Additionally, when a user wants to withdraw to a chain other than the pool chain, the size of the withdrawal can be limited to the available liquidity on the destination network.
In order for user to withdraw to connected chains, Replete utilizes a similar architecture to supplying, please refer to Supply to learn more.
Major difference revolves around when a user initiates a withdrawal, an additional signature from the user is required to authorize Replete Protocol to withdraw on their behalf. This measure is essential to mitigate smart contract risks during the withdrawal process, allowing the protocol to execute withdrawals on behalf of users within the specified allowance.
Withdrawals are contingent to collateral not being used for debt and the user not being at immediate risk of liquidation (Health Factor below 1)
When a user deposits assets in the protocol rTokens are minted. The value of the rTokens are pegged to the corresponding deposited asset at a 1:1 ratio.
When withdrawing assets, the rTokens are burned and the underlying assets are redeemed plus accrued fees.
