Deposit & Redemption Flows

Lagoon vaults use an asynchronous request-then-settle mechanism. Requests batch together and settle at a single valuation point, so everyone in the same cycle gets the same price, which is the standard structure for fund subscriptions in TradFi.

Deposit flow

1. requestDeposit()       User signals intent, USDC moves to the Deposit Silo
        |
2. Valuation Provider     Proposes a NAV to the contract (stored, not applied yet)
        |
3. Curator                Reviews the NAV, approves, calls settleDeposit()
        |
4. claimShares()          User retrieves their vault shares

A few things worth knowing:

• USDC sits in the pending silo until settlement, it's not in the Curator's hands yet and isn't included in NAV calculations
• The price used for settlement is the NAV approved at step 3, not the price when the request was made
• Curators can claim shares on behalf of users, which allows for automation

Synchronous mode (optional)

When enabled, depositors can skip the queue and deposit immediately using the most recent valid valuation. It reduces friction but creates arbitrage exposure if off-chain valuations drift from market reality. The Curator has to manage valuation lifespan carefully to prevent exploitation, so this mode isn't always active.

Redemption flow

1. requestRedeem()        User signals intent, shares move to the Redemption Silo
        |
2. Valuation Provider     Proposes a NAV
        |
3. Curator                Approves NAV, calls settleRedeem()
        |
4. claimAssets()          User retrieves their USDC

Two important differences from deposits:

• Redemptions can't be cancelled once requested. This exists to prevent users from forcing the Curator to unwind positions on a whim without a legitimate reason.
• Unlike deposits, Curators can't claim redemption assets on behalf of users. Each participant has to trigger their own claimAssets().

Pending silo architecture

Both flows use isolated silo contracts to hold funds during the pending phase. The Deposit Silo holds incoming USDC until settleDeposit() runs. The Redemption Silo holds redeemed shares until settleRedeem() runs. Pending capital is never mixed with managed positions.

---

Next: Vault Valuation