Quick Start

How to deposit, earn yield, and redeem from the ESPN vault.

Minting ESPN

To mint ESPN, deposit USDS to the vault.

The mint price starts at 100 USDS per ESPN
The mint price increases with the value of the underlying assets as yield accrues
There is no vesting or lockup. ESPN is fully permissionless and freely tradable

You can preview exactly how many ESPN shares you'll receive for a given USDS amount using previewDeposit().

Minting Cap

ESPN minting is capped. The deposit cap is monitored and adjusted based on demand and market dynamics. You can check the current remaining capacity by calling maxDeposit() on the contract.

The cap may be increased at any time. If the cap is reached, check back later or watch @eth_strategy for announcements.

Earning Yield

Holding ESPN earns yield over time. The amount of USDS each ESPN token can be redeemed for increases as option premiums flow into the vault. No action is required — yield accrues automatically to all ESPN holders.

Staking for Boosted Yield

ESPN holders can provide liquidity to the ESPN/USDS pool (via Arrakis) and stake their LP tokens for boosted yield based on lock duration. See Staking Incentives for mechanics and lock period details.

Redeeming ESPN

ESPN is redeemable for the underlying USDS.

Instant Redemption

When the vault has sufficient liquid USDS, redemptions are instant. Call redeem() or withdraw() on the ESPN contract directly.

Redemption Queue

When instant liquidity isn't available (options positions may need unwinding), redemptions go through the queue:

Approve your ESPN to the ESPNRedemptionQueue contract
Queue by calling queueRedemption(espnAmount) — you receive an ERC-721 NFT representing your position
Wait for your position to become eligible. Check with isEligibleForRedemption(tokenId)
Redeem by calling redeem(tokenId) when eligible — you receive exactly the USDS amount you queued

Your queue position is determined by cumulative dollar value (FIFO). A position becomes eligible when: redemptionsBefore < (totalRedemptionsProcessed + totalCancellationsProcessed + USDS balance in contract). You receive exactly your redemptionAmount in USDS — you don't benefit from ESPN yield while in the queue, but you also don't lose your original dollar value.

Cancelling a queued redemption: Call cancelRedemption(tokenId) to exit the queue and receive ESPN back. You receive ESPN worth the dollar value you originally queued at the current share price. Note: you may receive a different number of ESPN shares than you deposited — fewer if the share price increased, more if it decreased — but the dollar value is preserved.

Advancing the queue: If cancelled positions are ahead of you, anyone can call processCancelledRedemptions(tokenIds) with an array of cancelled NFT IDs to clear them, reducing the USDS needed for your redemption to be processed.