I Got a 63k WOO Token "Distribution Flush"

This was an unexpected surprise. Yesterday I received a little over 63k WOO tokens. At the time I received this transaction it was worth around 35 SWAP.HIVE, down a little today.

Image Source: https://leodex.io/wallet

The transaction was from "distribution_flush". Apparently one of the pools that hadn't completely paid out the full distribution was prematurely ended and the fund were flushed to liquidity providers like myself.

At least I think that's what happened. I've created a few diesel pools on Hive through the @memehive account. As you can see in the image below there is a "Flush Balance" button. It seems one of the pools I provide liquidity to simply flushed a large WOO balance.

Image Source: https://tribaldex.com/dieselpools/positions

I am not certain which pool it was though. WOO:SPS, WOO:PIZZA, WOO:SWAP.HIVE, and WOO:DEC are all still distributing WOO.

I suspect it was the WOOALPHA:PIZZA pool which was flushed yesterday. That pool can't be found searching distribution contracts on Tribaldex but I think I remember seeing that pool being active before. Maybe the pool was deactivated? The issuer of WOOALPHA is @woopackmanager but I can't find any corresponding transaction to flush the pool on the Hive blockchain explorer for @woopackmanager. I also can't find a corresponding flush trasaction being done by @wrestorgonline or @pizzaexpress, issuers of WOO and PIZZA tokens respectively.

It's also possible the flush was automatically done by the pool's smart contract. This is how ChatGPT explains distribution flush:

A distribution flush is a process in a liquidity pool that redistributes tokens in the pool to ensure that the relative proportions of each token remain constant over time.

In a liquidity pool, users can deposit tokens in proportion to their current value to earn rewards in the form of fees generated by the pool. As users trade these tokens, the relative proportions of each token in the pool can change, leading to an imbalance in the pool. If left unaddressed, this imbalance can lead to a situation where the liquidity pool is unable to provide sufficient liquidity for trading.

To prevent this, many liquidity pools use a process called a distribution flush, which periodically withdraws all tokens from the pool, redistributes them according to the current exchange rates, and then deposits them back into the pool. This ensures that the relative proportions of each token in the pool remain constant, and helps to maintain the liquidity of the pool over time.

During a distribution flush, users who have deposited tokens in the liquidity pool may experience a temporary interruption in their ability to earn rewards or withdraw their tokens. However, once the distribution flush is complete, the liquidity pool should return to normal operation, and users can resume trading and earning rewards as before.

Assuming that information from ChatGPT is accurate and WOOALPHA:PIZZA was the flushed pool it still doesn't explain why the 63,000+ WOO was sent to me. My #holovision.cash account literally supplies 100% of the liquidity for the WOOALPHA:PIZZA pool. That's only about 16 SWAP.HIVE worth of liquidity so it is low, probably not sufficient liquidity for trading, so maybe the pool was flushed and deactivated?

Image Source: https://tribaldex.com/dieselpools/positions

I don't know. Maybe Christmas came early. I am not complaining. I am just curious and if anybody knows please feel free to reply to this post.

I put all the WOO I got yesterday back into the liquidity pools that pair WOO with other tokens. Generally whatever tokens I get through @holovision.cash are being held long term. In other words no taksies backsies.