Supply

Liquidity in the protocol is held in pools. Users supply stablecoins to a pool and take them back out at any time — withdrawals are an exit path and keep working even when the protocol is paused.

Hub and spokes

Pool	id	What it holds
Hub	0	The core stablecoins, whichever governance lists. It is the pool DLRS represents
Spoke	>= 1	One additional stablecoin each, paired against a DLRS-side reserve funded with hub assets

An asset belongs to exactly one pool. Adding a stablecoin to the hub or opening a spoke for it is a governance decision, and the token's decimals are frozen at that moment.

Supplying to the hub

When a user supplies a hub stablecoin, the protocol records the contribution at 1:1 and mints DLRS:

Supply 1,000 USDC → 1,000 DLRS minted
Supply 500 USDS   → 500 DLRS minted

DLRS is fungible regardless of which stablecoin was supplied. 1,000 DLRS from a USDC supply is identical to 1,000 DLRS from a USDS supply — both represent the same hub basket.

Withdrawing from the hub

Burning DLRS takes out any hub stablecoin that has reserves, 1:1:

Burn 1,000 DLRS → Receive 1,000 USDC (if reserves cover it)
Burn 1,000 DLRS → Receive 1,000 USDS (if reserves cover it)

If the specific stablecoin isn't available, users can either:

1. Withdraw a different hub stablecoin that is available
2. Get in line for the one they want (see The Queue)

Supplying to a spoke

A spoke has two sides, and a liquidity provider can fund either:

• The spoke asset itself — it enters that spoke's reserve.
• A hub asset — it enters hub reserves and credits the spoke's internal DLRS-side reserve.

Either way the LP receives receipt shares in that spoke, minted pro-rata against the pool's total value. Shares are non-transferable and are tracked per pool, not as a token.

Exiting works in three ways: burn shares for the spoke asset, burn shares for a hub asset, or use redeemSpoke to take a proportional slice of both sides in one call. The last one is what lets an LP drain a position completely without leaving rounding dust stranded on one side.

Supplying to a spoke means taking exposure to that spoke's issuer, and the hub does not absorb that risk. Spokes covers how a spoke works and what that exposure actually looks like.

Units

All internal accounting is in normalized 6-decimal units. An asset with more decimals is scaled by 10**(decimals - 6), and supported decimals are [6, 18]. Sub-unit dust is never pulled from a supplier — it stays in their wallet.

Implementation detail

DLRS is a non-transferable ERC-20 with 6 decimals, minted only by the protocol. It cannot be transferred, traded, or used outside the protocol; transfer, transferFrom and approve all revert. Total supply equals the sum of hub reserves, and queue escrow is never counted as a reserve.

See Addresses for deployment status.