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Term

Cooldown periods

Official redemptions queue behind days or weeks of waiting — usually earning nothing.

What this is

Many protocols queue official redemptions behind a cooldown — from days (sUSDe: 1–7, extendable in extremes) to weeks (the apyUSD vault: ~20 days under its asynchronous ERC-7540 redemption flow). The delay is a designed shock absorber: it lets the protocol unwind positions in order instead of fire-selling.

What it means for your yield

During cooldown your funds usually earn nothing and cannot move — dead time that quietly lowers realized yield, and a real constraint if you need the money on a date. The DEX is the only instant exit, at the cost of slippage; in stressed markets, exactly when cooldowns extend, slippage is also at its worst.

Where it appears on Pennyworth

The exit box states each product’s official redemption path with its cooldown, whether interest accrues while waiting, and the instant DEX alternative.