Withdrawal Valuations In-Depth

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What Are Withdrawal Valuations?

Withdrawal valuations are used to track the withdrawals made from the Dex system. When a user withdraws funds from Dex, the system will notate the number of Drops removed and the equivalent proportion of USD value removed from the user’s Dex capital amount in that account. The values associated with each withdrawal will be tracked for 90 days, if the Drops are returned within the 90 day timeframe, the values deposited will be equal to the values withdrawn regardless of the price of Drops. All withdrawal valuations are visible in the Withdrawals History table or when attempting to start a new Dex profile / add to an existing profile.

Below is an example of what it looks like when you attempt to start a new Dex profile and you have made withdrawals in the past 90 days (and the Drops have not been returned yet).

Example of starting a new Dex profile with existing 90-day withdrawal valuations

Why Are Timers In Place?

Withdrawal timers are used to ensure sustainability and better tie the value of DROP tokens to the funds being traded by Dex. Price fluctuations in the DROP market do not necessarily translate to value changes in the funds traded by Dex. The timers are in place to prevent users from withdrawing funds from Dex based on changes in the DROP tokens market and then adding them back within a relatively short period of time, thus locking in a new initial value. The only way to receive a new valuation of your Drops is to wait until the 90-day timeframe has passed, lessening the risk of the DROP market being manipulated in order to receive a better valuation.

For a more in-depth look into why we implemented this system and how we chose to do it, read this article and this article.

How Do Withdrawal Valuations Work?

Every time a withdrawal is made from Dex, the date, time, and value are recorded. When a user attempts to deposit DROP tokens back into the system within 90 days of withdrawal, they will be added at the same value they were withdrawn until the amount of DROP tokens they have deposited passes the amount withdrawn. The valuation of your oldest withdrawal will be used first, followed by the next oldest and so on. In other words, if there are multiple withdrawals that have not yet been returned, they are filled in a first out, first back in order. Any Drops added above and beyond the value withdrawn are added at the 24-hour average price whenever they are put into Dex.


Example of adding to an existing Dex profile with existing withdrawal valuations

  • Withdrawal #1: 1,970 Drops valued at $8 on Sept. 15th
  • Withdrawal #2: 25,322 Drops valued at $100 on Sept. 25th
  • Withdrawal #3: 22,708 Drops valued at $90 on Oct. 1st

On 10/8, the user decides they would like to deposit Drops for their next cycle. They deposit 50,000 Drops to their portal wallet and send them to Dex. Because their 90-day periods have not completed on any of their withdrawals, their deposit will be as follows:

  • 1,970 DROP worth $8 from the first withdrawal on Sept. 15th
  • 25,322 DROP worth $100 from the second withdrawal on Sept. 25th
  • 22,708 DROP worth $90 from the third withdrawal on Oct. 1st

Once all withdrawals from the past 90 days are filled, any additional Drops deposited beyond this will be added at the 24-hour average market price.

Withdrawal History

Users are able to track all of their withdrawals from the Withdrawal History table. The table displays all withdrawals from both your primary and secondary accounts and informs users how long is left on their 90-day timers, how many Drops they withdrew and re-deposited, and displays what timers have or have not yet been completed.

  • Returned: Refers to the amount redeposited after making a withdrawal.
  • Days Left: Refers to how many days are remaining on the 90-day withdrawal timer.
  • Complete: Withdrawals are marked as complete when either 90 days have passed, or enough Drops have been deposited to clear the timer.

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