WPT (Withdrawal Proof Tokens)

Withdrawal Proof Tokens (WPT) is a NFT that is minted when a withdrawal request has been made, but the main fund vault does not have sufficient amount of USDC to cover the request. This should not happen very often, as some percentage of fund is reserved for withdrawal purpose. However, when a bridge is temporally down or a withdrawal rush happens, there might be situations that the majority of fund is locked up in other chains / yield pool. Usually, the fund will be recovered in 24h or depending on the protocols the fund is in in other pool. In this circumstance, an NFT called “WPT” will be issued and the participants will be put in a queue based on their request time. Once the fund vault is sufficient, the WPT can be burnt to finalise the withdrawal.

WPT can be traded on NFT markets to realise its value at any time.