100 DAI
to a public pool. When the LP deposits that 100 DAI
, the Hashflow smart contract will look at the exchange rate of hDAI
to DAI
(usually less than 1), and mint them the equivalent hDAI
. With a hypothetical exchange rate of .02, the LP will receive 4000 hDAI
which 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 100 DAI
.100 DAI
.