Redeem
Last updated
Last updated
Users can withdraw during the cycle buffer period, i.e., the 6 to 24 hours between the end of the previous lending cycle and the start of the new one. Alternatively, users can use the Queue contract to schedule their withdrawal while a cycle is running. The exit request will be processed by the pool curator at the first available buffer period.
While deposits happen in a single step, withdrawals are a two-step process happening during two different cycles:
Upon completion of steps 1, and 2
The user’s wallet will reflect a reduction in the representing his position in the pool
The user will need to claim his stablecoins representing his initial deposit, plus any interest generated after the new lending cycle starts
Early exit
When the interest rate of the next lending cycle is lower than the previous one by 1% or more (or otherwise provided in the Credit Agreement), lenders are entitled to an early exit and can redeem funds with a shorter waiting period, i.e., within 72 hours.
For example, a lender requests a withdrawal on Jan 31 during Cycle I, where the interest rate is 15%. If the Cycle II rate drops to 12%, the lender qualifies for an early exit and can claim his funds 72 hours after Cycle II starts (i.e., on Feb 3).
Similarly, users can use the Queue contract to schedule their redemptions while a cycle is running. Users will queue a withdrawal request, which will be processed by the pool curator at the first available buffer period.