100 DAIto a public pool. When the LP deposits that
100 DAI, the Hashflow smart contract will look at the exchange rate of
DAI(usually less than 1), and mint them the equivalent
hDAI. With a hypothetical exchange rate of .02, the LP will receive
4000 hDAIwhich are the loan shares that track their deposits.
DAI, Hashflow smart contracts will accept their
hDAI, burn it, and return DAI back equivalent to the exchange rate. If the market maker has made any profits on the DAI, the exchange rate will be higher, allowing the LP to withdraw more than