How Liquid is it?

Web3 Liquidity for Traditional Funds

schUSD has an estimated 200M limit before the strategy hits capacity. Chateau maintains a liquidity buffer for all chUSD redemptions with our qualified custodians. A portion of chUSD is deployed into cash equivalents, such as USDtb. schUSD pricing oracles, NAV updates and redemptions are processed weekly. Users can unstake schUSD for chUSD at any time. The underlying instruments for schUSD's private credit exposure are term loans with 90 day, 180 day and 270 day durations. This means the fund isn't the most liquid for immediate redemptions. Chateau and Covenant will prioritize liquidity for schUSD investors through existing interest payments and secondary liquidity with our Market maker partners. Covenant VC estimates they are able to process 10% NAV in redemptions per month from current interest payments alone. Expiring loans every month can also be used to process redemptions.

Aside from primary liquidity, Dex pools such as chUSD - schUSD pools on Uniswap will facilitate secondary liquidity for investors.