External Positions

External positions interact with external protocols, just like adapters. Interactions via an ExternalPositionProxy instance and its library affect its value, while interactions via parser contracts only affect validations and the parsing of user input.

External Position Types

Each external position is associated with a "type" that is written to ExternalPositionProxy.EXTERNAL_POSITION_TYPE upon its deployment. This type (e.g., a Compound debt position) instructs the system as to which library and parser contracts to use with proxy interactions.

A vault can have many active external positions of the same type.

There are no globally-enforced limitations on the asset counts that can be managed within any external position. If the need for a such a limitation arises for particular external position types, then a limitation should be imposed by the parser contract for that type.

AaveDebtPosition (v2)

Handles creating (borrowing), managing, and repaying debt positions on Aave v2.

Aave aTokens are held as collateral directly within the ExternalPositionProxy instance, which acts as the owner of the CDP.

Currently only handles variable debt, not stable debt.

Actions and considerations:

• AddCollateral - None

• RemoveCollateral - None

• Borrow - Borrowing accrues stkAAVE to the ExternalPositionProxy

• RepayBorrow - None

• ClaimStkAave - None

AaveV3DebtPosition

Handles creating (borrowing), managing, and repaying debt positions on Aave v3.

Aave aTokens are held as collateral directly within the ExternalPositionProxy instance, which acts as the owner of the CDP.

Currently only handles variable debt, not stable debt.

Actions and considerations:

• AddCollateral - can specify either aToken or its underlying (wraps to aToken)

• RemoveCollateral - can specify either aToken or its underlying (unwraps aToken collateral)

• Borrow - None

• RepayBorrow - None

• SetEMode - Used to toggle eMode (see Aave docs)

• SetUseReserveAsCollateral - Used to toggle isolation mode (see Aave docs)

CompoundDebtPosition

Handles creating (borrowing), managing, and repaying debt positions on Compound Finance.

Compound cTokens are held as collateral directly within the ExternalPositionProxy instance, which acts as the owner of the CDP.

Actions and considerations:

• AddCollateral - Receives cTokens from the vault which accrues COMP to the ExternalPositionProxy

• RemoveCollateral - None

• Borrow - Borrowing accrues COMP to the ExternalPositionProxy

• RepayBorrow - None

• ClaimComp - None

ConvexVotingPosition

Handles vote-locking CVX for vlCVX, delegating voting power to a 3rd party, and claiming rewards from Convex and Votium.

Does not currently support actually voting, which can be easily be accomplished by delegating to a 3rd party and voting directly via Snapshot.

Note that this uses CvxLockerV2, the second locker implementation.

Actions and considerations:

• Lock - Starts accrual of cvxCRV rewards and any extra rewards

• Relock - None

• Withdraw - Stops accrual of cvxCRV rewards and any extra rewards

• ClaimRewards - None

• Delegate - None

KilnStakingPosition

Handles staking ETH on the Beacon Chain via Kiln

Actions and considerations:

• ClaimFees - Can claim execution layer rewards, consensus layer rewards, or both. Consensus layer rewards also includes exited validator stake.

• Stake - In chunks of 32 ETH (i.e., not partial validators)

• SweepEth - Transfers any ETH in the contract to the VaultProxy

• Unstake - Joins the consensus layer exit queue, and the exited stake will need to be claimed into the Enzyme vault by calling the ClaimFees action for consensus layer rewards

• PausePositionValue - Causes KilnStakingPosition valuation to revert, which will also cause Enzyme vault share price calcs to revert. Can be used to temporarily close Enzyme vault deposits and redemptions in case of share mis-pricing due to a substantial slashing event until the KilnStakingPosition accounting corrects.

• UnpausePositionValue - None

• As with ETH staking integrations in general, slashing leads to temporarily over-pricing a validator's value (due to the delay of broadcasting a slashing event to the execution layer, and the uncertainty of slashed amount). This would lead to temporarily over-priced Enzyme vault shares. An asset manager could use the PausePositionValue action as a mitigation.

LidoWithdrawalsPosition

Handles un-staking ETH from Lido stETH.

Actions and considerations:

• RequestWithdrawals - None

• ClaimWithdrawals - ETH is received by the vault as WETH

• Position pricing: While a withdrawal request is pending, the value of the position is the stETH amount in the request (i.e., not yet the equivalent ETH value, which can technically not be 1:1)

LiquityDebtPosition

Handles borrowing LUSD using ETH as collateral on Liquity.

Actions and considerations:

• OpenTrove - None

• AddCollateral - None

• RemoveCollateral - None

• Borrow - None

• RepayBorrow - None

• CloseTrove - None

MapleLiquidityPosition

Handles lending on Maple Finance

Actions and considerations:

• CancelRedeemV2 - None

• LendV2 - None

• RedeemV2 - None

• RequestRedeemV2 - None

SolvV2BondBuyerPosition

Handles buying Solv v2 bonds at IVO (initial voucher offering) and claiming bond value at settlement.

Actions and considerations:

• BuyOffering - Once bought, any held voucher will result in an invalid (reverting) GAV/share price until that voucher's maturity

• Claim - None

SolvV2BondIssuerPosition

Handles issuing Solv v2 bonds at IVO (initial voucher offering) and settling bond value at settlement.

Actions and considerations:

• CreateOffer - Once created, any issued voucher will result in an invalid (reverting) GAV/share price until that voucher's maturity

• Reconcile - None

• Refund - None

• RemoveOffer - None

• Withdraw - None

StakeWiseV3StakingPosition

Handles staking ETH on the Beacon Chain via StakeWise v3 vaults

Actions and considerations:

• Stake - Does not need to be 32 ETH increments

• Redeem - Only if the StakeWise vault has a sufficient ETH balance

• EnterExitQueue - Joins the consensus layer exit queue, and the exited stake will need to be claimed into the Enzyme vault by calling the ClaimExitedAssets

• ClaimExitedAssets - If only partially claimable, a new exit request is created for the remaining requested amount

• As with ETH staking integrations in general, slashing leads to temporarily over-pricing a validator's value (due to the delay of broadcasting a slashing event to the execution layer, and the uncertainty of slashed amount). This would lead to temporarily over-priced Enzyme vault shares.

TermFinanceV1LendingPosition

Handles lending via Term Finance auctions.

Actions and considerations:

• AddOrUpdateOffers - None

• RemoveOffers - None

• Redeem - None

• Sweep - None

• Pricing considerations:

  • Assumes that the full expected loan value will be repaid at maturity, i.e., does not consider under-collateralization or failure to repay, even post-maturity.

  • After an auction ends and until loan maturity, lent value is not redeemable. During this time, value is estimated based on simple interest accrual, pro-rata for the time elapsed.

TheGraphDelegationPosition

Handles delegating $GRT to indexers on The Graph.

Actions and considerations:

• Delegate - Starts accruing $GRT rewards, and charges a flat delegation tax (currently 0.5%) on the delegated $GRT amount

• Undelegate - Stops accruing $GRT rewards

• Withdraw - None

UniswapV3LiquidityPosition

Handles minting, adding/removing liquidity, collecting fees, and burning UniswapV3 LP positions via Uniswap's NonfungiblePositionManager.

A minted nft representing a particular LP position (distinct fee, ticks, and token amounts) is owned by an ExternalPositionProxy of this type.

One such ExternalPositionProxy instance can own and manage multiple nfts of any token pairs (i.e., one fund can manage all of its NFTs in a single contract).

Actions and considerations:

• Mint - None

• AddLiquidity - None

• RemoveLiquidity - None

• Collect - None

• Purge - None