Token transfers

Token transfers also move the underlying strategy in a First In, First Out (FIFO) manner. This means that strategy balances are consumed in the order they arrived in the account.

For example, wallet A holds a total of 2.5 whyETH, allocated across three strategies: 1 whyETH is committed to Strategy S1, another 1 whyETH to Strategy S2, and the remaining 0.5 whyETH to Strategy S3. Upon transferring 2.2 whyETH to Wallet B, the associated strategies are also reassigned to Wallet B along with the corresponding amounts of whyETH. Consequently, Wallet B receives 1 whyETH from Strategy S1, 1 whyETH from Strategy S2, and 0.2 whyETH from Strategy S3. Following the transfer, Wallet A's new balance is 0.3 whyETH, with its holdings now entirely in Strategy S3, as the allocations in Strategies S1 and S2 have been fully transferred. Meanwhile, Wallet B's balance is updated to 2.2 whyETH, reflecting the inclusion of 1 whyETH in Strategy S1, 1 whyETH in Strategy S2, and 0.2 whyETH in Strategy S3.

The algorithm presented above is the default transfer mechanism of the whyETH token. The exception is that by using the LYS platform (or supporting platforms), you can choose specific proportions from each strategy that you want to transfer.

The flow is presented in the diagram below:

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