Spokes

A spoke is how a stablecoin joins the protocol without the hub taking on its risk.

What a spoke is

A par-value pair: one stablecoin against hub-side liquidity.

The hub holds the core stablecoins and is what DLRS represents. Every additional stablecoin gets its own spoke pool, and each spoke is isolated — its own liquidity, its own providers, its own risk.

A spoke has two sides:

Spoke pool (USDT example)
├── Spoke reserve      USDT held by the pool
└── DLRS-side reserve  hub-side liquidity funded with hub assets

Both sides are counted at par in normalized 6-decimal units, so the pool's value is simply spokeReserve + dlrsReserve.

The two sides exist because a swap consumes one and feeds the other. Someone buying USDT takes it out of the spoke reserve and pays in a hub asset; someone selling USDT does the reverse. The pool needs inventory on both sides to serve both directions.

How swaps move a spoke

Swap	Spoke reserve	DLRS side	Meaning
hub → spoke	down	up	The pool sells its spoke asset and takes in a hub asset — risk-reducing
spoke → hub	up	down	The pool absorbs the spoke asset and pays out a hub asset — risk-increasing

Hub-to-hub swaps never touch a spoke.

The hub asset that comes in on a hub → spoke swap lands in hub reserves, and the spoke's DLRS side is credited by the same amount. The two always move together, so total DLRS supply always equals hub reserves no matter what a spoke does.

What a liquidity provider holds

An LP can fund either side — the spoke asset itself, or a hub asset that credits the DLRS side. Either way they receive receipt shares: a pro-rata share of the pool's total value, non-transferable and tracked per pool rather than as a token.

The first LP into an empty pool mints shares 1:1 with the value they add. After that, shares are pro-rata against the pool value before the deposit. All rounding is against the depositor, so nobody mints more shares than the value they bring.

The position rotates

This is the part worth understanding before supplying. Shares represent a pro-rata share of the sum of both sides, not of the asset you deposited. As swaps flow, the mix underneath your shares changes:

You fund the DLRS side with 100,000 USDC.
Pool: 100,000 USDT + 100,000 hub-side units = 200,000 value. You hold 50% of it.

The market sells USDT into the pool (spoke → hub, 60,000):

Pool: 160,000 USDT + 40,000 hub-side units = 200,000 value. You still hold 50%.

Your share is unchanged in stated pool value, but the assets behind it are now mostly USDT. That is the position: an LP absorbs the asset the market is selling, at par, with no fee to compensate for it. You are taking issuer exposure on that spoke's stablecoin. If it depegs, the redemption value of your shares is what the reserves actually turn out to be worth, and a governor write-down (syncReserves) makes each share pay less — losses are shared pro-rata across the pool's LPs, and no further.

The hub does not absorb any of this. Spoke activity never draws down hub reserves beyond that spoke's own DLRS side, so hub depositors are insulated from a spoke's losses.

Exiting

Three ways out, none of them blocked by pause:

How	What you get
withdraw with the spoke asset	Your pro-rata value, paid from the spoke reserve
withdraw with a hub asset	Your pro-rata value, paid from hub reserves, consuming the DLRS side
redeemSpoke	A proportional slice of both sides in one call

The single-asset paths can fail when one side alone cannot cover your value. redeemSpoke always can, which is why it is the clean way to close a position completely — and burning the last shares drains both reserves to exactly zero.

The brake: minDlrsReserve

A spoke → hub swap is what grows an LP's exposure to the spoke asset. minDlrsReserve is the floor that caps it: only the DLRS side above that minimum is available to swappers.

dlrsReserve = 100,000, minDlrsReserve = 30,000
→ at most 70,000 of spoke asset can be absorbed before the route stops filling

So the minimum is a ceiling on how much of the spoke asset the pool will take on. The governor sets it per spoke, through the timelock.

It does not gate LP exits. An LP withdrawing or redeeming can draw the DLRS side all the way to zero — the floor restrains the market, never the provider getting out.

Launch caps

A new spoke starts throttled. The launch cap is a ceiling on the pool's exposure — its spoke reserve plus its DLRS side — and deposits that would exceed it revert. The governor raises, lowers or removes it through the timelock; the guardian can tighten it instantly but can never loosen it. A cap of 0 means uncapped.

Queues on a spoke

Queues are per direction, so a spoke has its own: USDC → USDT is a different queue from USDT → USDC. They behave exactly as described in The Queue.

One spoke-specific behavior: adding liquidity to a spoke settles the queues that the new liquidity can now fill, in FIFO order and up to 8 positions each. An issuer topping up their spoke clears the demand that was waiting on it, in the same transaction. Any queue whose offer asset is unhealthy — deposit-paused, in a paused pool, or off peg — is skipped rather than settled, so a bad asset can neither be absorbed at par nor block someone else's deposit.

Lifecycle

Status	Deposits	spoke → hub	hub → spoke	LP exits & cancels
Active	yes	yes	yes	yes
WindingDown	no	no	yes	yes
Killed	—	—	—	—

Wind-down is the governor saying no more exposure to this asset: it blocks new liquidity and the risk-increasing direction, while leaving open everything that reduces risk or lets people out.

A spoke can only be removed once it is fully drained — zero reserves on both sides, zero shares, and no queued depth on any route touching its asset. redeemSpoke is how LPs get it there. Removing it pauses the pool and unlists its asset; the poolId is retired but never reused, so ids never shift.

Spoke to spoke

The protocol itself does not route spoke to spoke — a direct attempt reverts with InvalidRoute. It is composed as two legs through a hub asset: spoke → hub, then hub → spoke.

A peripheral router contract is planned to perform both legs in a single call, built on top of the audited protocol rather than by changing it.