When a redemption request exceeds the "Redemption Limit Band", Trihouse does not restrict users - it activates a cautious, robust process for the safety of all pool participants.
In this case, users can redeem their share of the underlying asset pool by burning TETH based on the real-time TETH:wstETH rate. Large redemptions require complex "disassembly" steps, which include withdrawing collateral, unlocking LST, and repaying loans. Some releases can take several days, so there is an estimated 7-day waiting period for such redemptions.
This design prevents inefficient liquidation, protects the pool's value, and ensures the stability of the long-term ecosystem. Trihouse's approach maintains a balance between individual redemption demands and the health and growth of the entire system.
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