Epochs

An epoch is a fixed time window (currently planned as 1 week) during which user activity (deposits, withdrawals, borrowing) is collected, reviewed, and processed together.

At the end of each epoch, the system processes all requests in the following order:

1. Withdrawals (first come, first served)

2. Deposits

3. Borrowing requests (utilizing leftover stablecoins after withdrawals & deposits)

This ensures that liquidity is always available to users exiting the system, and it provides a predictable, consistent cycle for how funds move through the protocol.

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💼 How Do Deposits Work?

• When you deposit into LSRWA Express, your funds don’t start earning immediately.

• Instead, your deposit is queued and processed at the start of the next epoch.

• Once processed, the system uses your stablecoins to acquire $LSRWA on your behalf, and rewards begin accumulating.

✅ No staking, claiming, or managing required — it's automated.

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💸 How Do Withdrawals Work?

• When you submit a withdrawal request, it gets added to the queue and will be processed at the end of the current epoch.

• If there’s enough stablecoin liquidity in the pool, your withdrawal is fulfilled immediately.

• If not, your request will roll over into the next epoch(s) and be prioritized ahead of new deposits or borrow requests.

• Most withdrawals are expected to process in 1–2 epochs, but it may take up to 2–3 epochs in rare cases with high demand or low liquidity.

✅ FIFO (first-in, first-out) order guarantees fairness.

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🔄 Example Scenarios

Scenario 1: Smooth Flow

• Total pool funds: $25K

• Withdrawals requested: $26K

• Deposits requested: $10K

• Borrow requested: $20K

➡️ $25K in withdrawals processed → $10K in deposits processed → $3K in withdrawals left pending for next epoch.

Scenario 2: Liquidity Crunch

• Total pool funds: $5K

• Withdrawals requested: $10K

• Deposits requested: $3K

➡️ Only $5K processed for withdrawals. The remaining $5K is queued.

The originator must return liquidity or be liquidated, ensuring the protocol can fulfill queued withdrawals in the next 1–2 epochs.

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🔐 Is This a Lockup?

Technically, no fixed lockup, but practically:

• Deposits become active only at the start of the next epoch

• Withdrawals may take 1–3 epochs depending on liquidity

• Rewards don’t accrue until your deposit is processed (i.e., epoch begins)

It’s best to think of it as a soft lockup window — short, predictable, and designed for stability.