Olympusdao
Olympusdao: full redemption timing for Convertible Deposits
The Olympus protocol’s Convertible Deposits give stablecoin depositors an option to convert to OHM at a locked price. Full redemption with receipt tokens alone requires a full deposit period from redemption start. Including the matching CD position instead ties the wait to its conversion expiry, which may already have passed. Redemption must still be initiated and finished; expiry does not automatically return the deposit.
Receipt tokens and the CD position
Receipt tokens represent the deposited asset and term. The separate CD position records the locked OHM conversion price and expiry. Full redemption does not require the position, although including it changes which date determines eligibility.
For receipt tokens submitted alone, time spent holding them before initiating redemption does not reduce the waiting period. Including the matching position preserves its existing conversion expiry as the endpoint. An already-expired position can satisfy that timing condition immediately, even though its option to convert to OHM has ended.
Starting and completing full redemption
Initiating redemption transfers receipt tokens into the DepositRedemptionVault and reserves the corresponding amount of the deposited asset. The receipt tokens remain locked while redemption is active. Once the applicable waiting condition is satisfied and any outstanding redemption-loan principal and interest have been repaid, a separate completion action burns the receipt tokens and releases the reserved deposit amount.
Full redemption has no protocol redemption fee. It returns the deposited asset and does not depend on OHM reaching the position’s conversion price.
Borrowing, cancellation and conversion
Borrowing against an active redemption is available only for assets and facilities configured for it. Outstanding loan principal or interest blocks both completion and cancellation of the redemption. The loan has its own deadline and defaults if it is neither repaid nor extended before expiry. Reaching the redemption waiting date does not remove these obligations.
Repaying a redemption loan leaves the receipt tokens locked in the vault. Cancellation returns the receipt tokens; restarting redemption with receipt tokens alone begins a fresh full-term wait.
Receipt tokens committed to an active redemption cannot be converted to OHM. To use them for conversion, any redemption loan must be repaid and the redemption cancelled first. Conversion then requires both the receipt tokens and the matching CD position, and it must occur before that position expires.
Early reclaim uses a discount
Early reclaim requires receipt tokens and burns them to return the corresponding deposited asset immediately with a discount applied. If those tokens are locked in an active redemption, repay any outstanding loan principal and interest and cancel the redemption first. Governance configures the reclaim rate for the supported asset and deposit period, and the protocol treasury retains the discount. This differs from full redemption, which returns the corresponding deposit amount after its applicable wait and completion requirements are met.
Redemption decision checklist
- Identify whether the redemption uses receipt tokens alone or includes the matching CD position.
- Use the redemption start for a fresh full-term wait, or the included position’s conversion expiry for position-based timing.
- Before completing redemption, confirm timing eligibility and repay any outstanding redemption-loan principal and interest.
- If immediate early reclaim is needed, confirm the receipt tokens are available outside an active redemption and check the discount for the asset and deposit period.
