The Withdrawal Validator contract exists to define what constitutes a shortfall event on-chain. In practice, the following flow will determine how many funds are available for withdrawal:
- Shortfall occurs
- Logic in pre-defined withdrawal validator contract determines eligible withdrawal amount (per each asset)
- Treasury calls
withdraw()function on Aera pool, which calls withdrawal validator and requests no more than the alloted amount.
Right now, the Withdrawal validator contract is agreed between the treasury and Aera team. The treasury management strategy is developed in a way that aims to achieve the greatest protection against specific types of shortfalls defined by the withdrawal validator contract.