Settlement Mechanism

The exchange mechanism operates in real-time, with DFY+ price calculated continuously based on the protocol's overcollateralization ratio. Users can initiate exchanges between DFY and DFY+ tokens at any time at the current calculated price, with a 7-day settlement period before the exchanged tokens become claimable.

When users exchange in either direction, the conversion executes immediately at the current DFY+ price, and they receive the correct amount based on that moment's calculation. The resulting tokens (whether DFY+ or DFY) enter a 7-day lock before becoming claimable and transferable. During this waiting period, users maintain their claim to the exchanged tokens but cannot access or transfer them until settlement completes.

This settlement delay enhances protocol security by providing a buffer period that prevents rapid arbitrage exploitation and protects against potential flash loan attacks, ensuring the system remains stable while processing genuine user conversions.