Redemptions

There are two redemption paths in the Nerona stack: unstaking sUSDnr back to USDnr, and converting USDnr back to USDC (or other stables). Understanding both matters — they have different mechanics, different timings, and different fees.

sUSDnr → USDnr

sUSDnr holders can exit the vault in two ways.

Standard redemption (4-day unwind)

1. Call request redemption on the vault, specifying the sUSDnr amount
2. Your sUSDnr is burned and your claim is registered
3. After a 4-day cooldown, the claim becomes redeemable
4. Anyone (Upshift keeper, Nerona, or you) can process the claim — USDnr is sent to your address

No fee. This is the canonical exit and the path most users will use.

Instant redemption (1% fee)

For users who need immediate liquidity:

1. Call instant redeem on the vault
2. sUSDnr is burned and USDnr is returned in the same transaction
3. A 1% fee is deducted and routed to the Nerona treasury

The 4-day unwind exists so the vault can liquidate underlying strategy positions in an orderly way — bridging capital home, exiting LP positions, unwinding Pendle PTs, etc. The instant option is a liquidity service, priced to cover the cost of maintaining a buffer and to discourage casual use as a short-term trading pattern.

Why 4 days

Four days is calibrated to the realistic worst case for unwinding a diversified, multichain DeFi position without moving markets. Faster unwinds would require either holding more idle USDnr in the buffer (reducing yield) or accepting slippage on exits (reducing yield differently). We chose to optimize for yield-on-deployed-capital and price instant liquidity separately.

USDnr → USDC

USDnr redemption to USDC happens via the secondary market — specifically the wM/USDC Uniswap V3 pool on Ethereum mainnet.

The flow is:

1. USDnr redeems 1:1 into wM (M0's T-Bill-backed token)
2. wM swaps to USDC on the Uniswap V3 pool
3. The pool charges the standard 0.01% fee tier

Because wM is itself 1:1 redeemable against T-Bills at the M0 layer, arbitrageurs keep the wM/USDC pool tight. In practice, USDnr → USDC conversion happens at very close to 1:1, modulo the 0.01% pool fee and any routine AMM slippage.

Summary table