# User scenarios

### Scenario 1: Periodic LP to earn LP fees and yield

#### Primer

When a user deposits ETH they can end up in either sgETH or wsgETH. 

Staking sgETH into wsgETH earns the user yield from validators. 

But sgETH is 1:1 with ETH and acts as a better option for liquidity pools designed for pegged tokens like univ3 and curve. 

wsgETH yield is disbursed discretely and then continuously. 

* discretely - There are delays to earning yield from validator deploy delays. i.e. right now it takes 45 days for a funded validator to start earning rewards due to the beacon chain queue. So rewards are disbursed by called a work() function on contracts by the DAO once worthwhile rewards are buffered in the RewardsReceiver Contract from the beacon chain deployed validators.  
* continuously - Additionally the wsgETH contract distributes sgETH rewards linearly over a governance set epoch length (1 week to 1 month, relative to beacon chain entry queue length) to protect against potential attack vectors   

#### Steps

1. Day 0 - User deposits ETH for sgETH\
   Aprrox 91 days to rewards, 45 days in entry queue, 45 days for linear reward distro, 1 day of rewards
2. Day 0 - User deposits sgETH:ETH LP into univ3/curve/other partner LP protocols
3. Day 1 to 90 - Users can enter and exit via the LP positions generating fees. sgETH acts as a 1:1 pegged wrapped ETH alternative and may earn rewards in LP and help us get it listed as collateral too. 
4. Day 45 - User deposits sgETH + n % earned from being an LP into wsgETH 
5. Day 91 - User withdraws sgETH from wsgETH with all accrued interest  
6. At this stage the user can withdraw via new sgETH coming into the contract or the liquidity pool. Total sgETH = (principal + LP gains + validator interest) 

Given the above heres some interest rate calculations. \
\
1\.