Passive LP: the lazy pool

Don't want to pick a particular market and watch its depth — just put VIZ into the lazy pool. It is a passive product: your capital automatically feeds the system (leverage first of all) and earns yield, while you monitor nothing.

The gist in two paragraphs

You deposit VIZ (pm_lazy_deposit) and receive pool shares at the pool's current equity price (not at face value: the share price is computed from free + allocated − pending_withdrawals, so that a new deposit made while capital is deployed does not get an inflated weight). The pool acts as the counterparty to leverage traders: a leverage loan is fronted by the lazy pool, and the markup plus the funding rate flow back into the pool as yield. On top of that comes a share of general fees.

Your principal in the pool comes back, but the payout may enter a FIFO queue if there is not enough free balance right now (capital is deployed in open leverage positions). The pool's invariant is free_balance ≥ 0: the pool never pays out more than is actually free; a withdrawal request is registered and settled as funds return. The early-withdrawal penalty is taken only from rewards — the principal is not cut.

What happens, step by step

Deposit. pm_lazy_deposit — VIZ goes into the pool and you receive shares at the equity price. From there the pool itself decides where to route the capital (leverage, depth); you do not steer this manually.

Yield accrues. Leverage traders pay the markup and funding — that goes into the pool's yield. Your shares grow in value. The income is passive; there is nothing to click.

Withdrawal — planned or emergency. pm_lazy_withdraw (partial, by shares, or everything). If the pool has enough free balance, the payout is instant. If capital is deployed, a request (pm_lazy_withdraw_request) enters the FIFO queue and is settled as funds return from leverage/depth. An emergency withdrawal takes a penalty — but only from accrued rewards; your principal is not reduced.

The queue and its order. Requests are settled in arrival order on every event that returns free balance (leverage close, conversion, a new deposit). This protects the pool from going negative — a lesson from the early design, when an emergency withdrawal could drag free_balance below zero.

What a passive LP needs to understand

• The pool is the counterparty to leverage. Unlike a direct market LP (curve depth, principal-protected against the outcome), the lazy pool carries the risk of leverage positions: its capital is borrowed by traders. The yield is higher, but the nature of the risk is different.
• The share price is equity-based, not face value. You receive shares at the pool's real value, not 1:1. That distributes yield fairly between old and new depositors.
• A withdrawal may wait. If all free balance is deployed, your request enters the queue. That is not a loss — the principal returns as positions unwind; but immediacy is not guaranteed.
• The penalty hits rewards only. An early/emergency withdrawal cuts yield, not principal. free_balance ≥ 0 is a hard invariant.
• Passivity is both a plus and a minus. You do not pick markets and do not monitor depth, but you also do not control where the capital goes.

Roles next to yours

• Leverage trader — borrows from your pool to bet on price; their markup is your income.
• Active LP — the opposite product in spirit: manual depth in a specific market, principal-protected against the outcome.
• Market creator — builds the markets on which leverage and depth operate.

Further reading: "Leverage trader" (who borrows from the pool and how), "Active LP" (how it differs from direct liquidity), "The lazy pool in detail" (equity price, FIFO withdrawal, yield step by step).