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.
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 to be advanced, after which, the user can optionally claim 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:
estimated shUSD received = USDC deposit amount / (current shUSD price × (1 + daily average yield))
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.
Since the upcoming cycle's shUSD 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 sherpaUSD).
Example deposit scenario:
The vault is on cycle #4, and the share price is 1.000683 USDC per 1 shUSD.
The user deposits $100,000 USDC, they then wait ~6 hours for the cycle to advance.
After advancing to cycle #5, the updated share price is now 1.001516 USDC per
shUSD, and the user is eligible to claim their 99,848.629shUSDfrom the vault.This redemption can happen during cycle #5 or anytime afterwards.
USDC deposit amount ÷ finalized cycle's price = amount of
shUSDreceived e.g.: 100,000 ÷ 1.001516 ≈ 99,848.629shUSD
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 for more information.
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