Withdrawing

How to Withdraw

Just like deposits, withdrawals from the vault can be requested anytime. Once again, a user must first choose the network their shUSD is held on, and then they can specify the amount they want to withdraw within the withdraw tab.

Once their withdrawal transaction settles onchain they will have a pending withdrawal. In order for the withdrawal to be officially completed a user must wait for the next cycle to be advanced and then they must finalize it.

Withdrawal Flow & Pricing

The user will receive USDC in accordance with the current cycle's shUSD price. Note that redemption pricing for withdrawals is being handled slightly different than the minting pricing of deposits.

USDC received = shUSD withdrawal amount * current shUSD price

Since the current cycle's shUSD price is used for withdrawals, a user's shUSD shares are burned instantly upon requesting the withdrawal. The sherpaUSD backing reserves for the withdrawal are also burned instantly (see sherpaUSD).

Example withdrawal scenario: The vault is on cycle #12, and the share price is 1.006964 USDC per 1 shUSD.

1. The user withdraws their 99,848.629 shUSD and waits ~12 hours for the vault to advance.

2. After advancing to cycle #13, the new price is now 1.007703 USDC per shUSD, and the user can then finalize their withdrawal.

3. Finalizing can happen during cycle #13 or anytime afterwards for a return of 100,543.97 USDC.

   shUSD withdrawal amount × current cycle's price = amount of USDC received e.g.: 99,848.629 × 1.006964 ≈ 100,543.974 USDC

Cancelling Withdrawals

If a user deposits and afterwards changes their mind, they can undo their deposit by clicking the 'Cancel' button. In this scenario, the deposit isn't actually cancelled, but rather converted into a pending withdrawal than can be finalized following the vault's advancement to a new cycle. This cancel mechanism saves the user from having to wait an extra cycle to advance before being able to request a withdrawal.

Withdrawal Limits

There are no withdrawal limits aside from the sherpaUSD reserve that must be present within the vault on the network that the user wishes to withdraw from. A user can always bridge to other networks or wait for routine rebalancing to occur.