Withdraw
Users can withdraw funds from RollApps using Dymension's validation processes. By leveraging the eIBC transfer protocol, built on top of IBC, users can bypass the need to wait for the completion of dispute periods.
To initiate a withdrawal, users submit a withdrawal request on the RollApp and pay a priority tip
- a fee calculated as a percentage of the transferred tokens.
Bridge LP
Liquidity Provider
Liquidity providers grant Operators the authority to fulfill orders by setting a spend limit per token, specifying how much Operators can use and for which RollApp. Tokens remain liquid unless they are used to fulfill orders; in such cases, the funds are locked for the duration of the dispute period.
User funds are at risk if a RollApp executes a fraudulent state transition that goes unreported. To mitigate this risk, it is crucial to select trustworthy Operators who actively validate and monitor RollApps.
Operator
Operators fulfill orders by running an eIBC client via Roller and earn an operator fee at the conclusion of the dispute period. Roller creates an Operator object with the appropriate metadata for liquidity providers to be able to select an operator via the Portal.
Operators never hold liquidity providers' funds directly; they are solely authorized to fulfill orders within the spend limits set by the liquidity providers.
Updating Priority Tips
The destination address (e.g., user@dym
) can choose to increase the priority tip
(i.e., fee) they are willing to pay. This flexibility is particularly useful during periods of high withdrawal demand or when the market rate for processing withdrawals rises.
Validating Transfer Fee
As part of the Dymension L1 monetary policy a base fee is applied to withdrawals, calculated as a percentage of the tokens being transferred. This percentage is a parameter that can be adjusted through onchain governance.
Liquidity providers are charged the validating transfer fee. As such the fee charged by liquidity providers must be greater than the fee charged by Dymension L1. Collected fees are converted to DYM
and then burned, reducing the overall token supply.
Parameter | Current value |
---|---|
Validating Transfer Fee | 0.00% |