EverLong vault spec

[wakamex]

Spec out the business logic of a Hyperdrive vault that takes base token as deposit and continuously opens Hyperdrive Longs.

Requirements:

• Buys Longs and auto-rolls them
• Additional business logic
  • How much liquidity do you leave unused
  • How often do you buy?
  • How often do you roll?
• Draw out flow of tokens between buckets as:
  • Users deposit
  • Positions mature
  • Users withdraw
• Optimize to:
  • A rate (may end up with excess funds)
  • A maturity date (average maturity = 6 months)
  • Liquidity buffer (how much to leave uninvested? 20%?)
• Oracle problem
  • Does this vault need one?
  • What does Gearbox use?

[wakamex]

1. Parameters:
   • uninvested amount X as percentage of total assets
   • target weighted average maturity (WAM) Y duration (seconds, months, etc.)
   • Greatly benefits from having a choice between two terms (3m and 6m terms)
2. Invest if uninvested amount is <X%
3. On investment:
   • If WAM < target, open long on longer term
   • If WAM > target, open long on shorter term
4. On withdrawal, pay out from uninvested amount
   • If uninvested amount is not enough, close longs
   • All else equal, prefer closing longs closer to maturity
   • If WAM < target, close long on shorter term
   • If WAM > target, close long on longer term
5. On maturity, funds go to uninvested amount
   • Possibly ping() to withdraw matured amounts
6. Possible rebalance() function:
   • If WAM < target, close long close to maturity, open long on longer term
   • If WAM > target, close long far from maturity, open long on shorter term