Token Lifecycle

The HedgeCore token lifecycle implements regulated phases engineered to enforce staking commitment, yield qualification, and transfer security. Distinguished from conventional staking tokens, sUSD operates as soul-bound with precisely defined state progressions.

Phase 1: Deposit and Generation

Lifecycle initiation occurs when participants authorize protocol USDC transfers and the owner (typically multisignature) executes depositAndMint(). The contract generates sUSD at 1:1 parity and establishes wallet time-locks for participant-specified durations (minimum 1 hour, maximum 365 days). Lock timestamps record in the unlockAt mapping.

Phase 2: Locked Staking Duration

Throughout lock periods, wallets:

• Prohibit sUSD transfers or approvals freely
• Prevent token deployment in external protocols
• Qualify for reward allocation via rewardMint()

Locked tokens strengthen staking architecture by eliminating short-duration speculation or flash-loan exploitation patterns.

Phase 3: Manual Release

Upon lock expiration, tokens maintain non-transferability until participants invoke unlock(). This deliberate step prevents automated bot-driven unlocking and ensures conscious participant re-engagement. Subsequently, wallets receive permanent unlocked status.

Phase 4: Post-Unlock Status

Unlocked wallets gain capacity to:

• Transfer sUSD (when recipients also maintain unlocked or whitelisted status)
• Authorize contracts for sUSD utilization (subject to protocol parameters)
• Engage with whitelisted DEXs or liquidity integrations

When participant balances reach zero, addresses receive automatic unlocked designation via internal mechanisms (_autoUnlock()).

Reward Progression

Rewards deploy through rewardMint(), which:

• Generates sUSD to participants
• Inherits existing lock parameters when established
• Applies 1-second placeholder lock when none exists

This prevents instantaneous reward liquidation and maintains yield connection to protocol engagement.

Accelerated Exit

The owner may invoke earlyRedeem() enabling participants to exit prematurely, burning their sUSD and recovering USDC 1:1. This function targets exceptional circumstances and excludes participant-callable access.

Lifecycle Protection

All lifecycle transitions enforce through contract logic:

• Transfers block via _update() unless both parties qualify
• Locks timestamp and specify per-wallet
• No passive unlocking occurs
• Reward generation respects lock parameters

The outcome delivers yield-bearing tokens with protocol enforcement, eliminating conventional transferable asset vulnerabilities.

hUSDC Wrapper Integration

For liquidity needs during locked periods, participants can utilize hUSDC wrapper:

• Wraps locked sUSD into tradeable hUSDC
• Maintains underlying sUSD yield generation
• Enables market participation without compromising soul-bound properties
• Unwrapping returns to standard sUSD lifecycle

This dual-token approach preserves lifecycle integrity while providing liquidity access.