# Depositing

### How to Deposit

A user can request to deposit into the vault anytime by first choosing the network of their choice and then specifying an amount within the Deposit tab.  

<figure><img src="/files/HFs3p3GW8hI37zhlSpsE" alt=""><figcaption></figcaption></figure>

Once their approval and deposit transaction settles onchain they will have a *pending deposit*.  In order for the deposit to be officially completed a user must wait a short period of time for the next [cycle](/sherpaearn-vault/cycles.md) to be advanced, after which, the user can optionally [claim](/sherpaearn-vault/depositing/claiming-shusd.md) their `shUSD` for added benefits.

### **Deposit Flow & Pricing**

The user will receive `shUSD` in accordance with the upcoming cycle's shUSD price.  Future shUSD prices cannot be known ahead of time, so the 'You Receive' amount is only an estimation based on the historical daily yield rate:

<p align="center"><em><mark style="color:$info;background-color:$info;">estimated</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>shUSD</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">received =</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>USDC</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">deposit amount / (current</mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;"><code>shUSD</code></mark><mark style="color:$info;background-color:$info;"> </mark><mark style="color:$info;background-color:$info;">price</mark> <mark style="background-color:$info;">×</mark> <mark style="color:$info;background-color:$info;">(1 + daily average yield))</mark></em></p>

The yield amount applied during the cycle advancement and the amount of withdrawals made before the current cycle ends both have a direct impact on the `USDC` : `shUSD` conversion rate.

<mark style="color:$info;">Since the upcoming cycle's</mark> <mark style="color:$info;"></mark><mark style="color:$info;">`shUSD`</mark> <mark style="color:$info;"></mark><mark style="color:$info;">price is used for deposits, a user's shUSD shares are minted after their deposit it made (during the cycle advancement process.) The sherpaUSD backing reserves for the deposit are minted instantly (see</mark> [<mark style="color:$info;">sherpaUSD</mark>](/sherpaearn-vault/sherpausd.md)<mark style="color:$info;">).</mark>

**Example deposit scenario:**  \
&#x20;  The vault is on cycle #4, and the share price is 1.000683 USDC per 1 `shUSD`.

1. The user deposits $100,000 USDC, they then wait \~6 hours for the cycle to advance.
2. After advancing to cycle #5, the updated share price is now 1.001516 USDC per `shUSD`, and the user is eligible to [claim](/sherpaearn-vault/depositing/claiming-shusd.md) their 99,848.629 `shUSD` from the vault.&#x20;
3. This redemption can happen during cycle #5 or anytime afterwards.

   &#x20;     <mark style="background-color:$info;">USDC deposit amount ÷ finalized cycle's price = amount of</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`shUSD`</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">received</mark>\
   &#x20;     <mark style="background-color:$info;">e.g.: 100,000 ÷ 1.001516 ≈ 99,848.629</mark> <mark style="background-color:$info;"></mark><mark style="background-color:$info;">`shUSD`</mark>

### **Deposit Limits**

Users must deposit at least 1 USD per deposit transaction.  There is no maximum deposit amount, however deposits are limited by the available capacity left within the vault on a given network. See [vault capacities](/sherpaearn-vault/multichain-architecture/vault-capacities.md) for more information.


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