Composable Finance
PoC vault and liquidity rebalancing process
Following the closure of our L1 vault, Composable has made preparations to commence the PoC ensuring liquidity on the respective L2 for Polygon and Arbitrum.
As bridges do not have contract interaction functionality as yet, Composable built an automated process for facilitating liquidity transfer. At a high level, this 3 step process includes:
Preparing Liquidity
1. Moving USDC and wETH out of the L1 liquidity vault to a secured wallet
2. USDC and wETH are then moved from the secured wallet to a secured wallet on each of Polygon and Arbitrum. Roughly 25% of the deposited funds were stored in the secured wallet to ensure the ability to rebalance throughout the duration of the POC. 68 wETH and 198k USDC were stored in the L1 vault located at: 0xef4439f0fAe7DB0B5ce88C155fc6af50F1b38728
3. USDC and wETH are then send to the respective L2 Vaults on each of Polygon and Arbitrum
The detailed process and the respective wallets to ensure transparency are outlined below:
1. USDC and wETH out of the L1 liquidity vault:
2. Movement to Polygon and Arbitrum wallets
3. USDC and wETH are then send to the respective L2 Vaults on each of Polygon and Arbitrum
i. Move from Mainnet(L1) wallet to Mainnet(L1) L2Vault (183k USDC, 60WETH)
ii, Move from Arbitrum wallet to Arbitrum L2Vault (183k USDC, 60WETH)
iii. Move from Polygon wallet to Polygon L2Vault (183k USDC, 60WETH)
-- Liquidity Rebalancing Event
In order to ensure there is sufficient liquidity in each of the L2 vaults to facilitate the operation of the PoC, Mosaic has defined a process to trigger a rebalancing event to replenish liquidity. At a high level the process is as follows:
  • Once either of the respective L2 vaults on Polygon or Arbitrum reaches a certain threshold, this will trigger a rebalancing event
  • Mosaic will shift equal amounts of USDC and wETH to the other vault
  • Composable will also announce on it's official channels once a rebalancing event has occurred with the respective transaction hash
Last modified 3mo ago
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