# Overview

For the *how-to* docs, please see [this page](https://docs.caviarnine.com/products-floop/lsu-pool/move-stake-and-instant-unstake#instant-unstake).

### What happens?

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*You send an LSU and you get back XRD instantly!*
{% endhint %}

Note, you will get back LESS XRD than if you unstaked from your validator and waited the 7 days protocol unstaking period.<br>

### How does it work?

Actually it's very simple:

1. When you send the LSU you ADD liquidity to the LSU Pool and get back a LSU-LP token
2. Then in the same (atomic) transaction you sell that LSU-LP token in the LSU-LP/XRD shape liquidity pool, which you can see here: [LSU-LP/XRD Pool](https://www.caviarnine.com/earn/shape-liquidity/pool/component_rdx1cp252c4c3lglccp98a036ngwt5wjmf2zh5sda46la0zy2y2dq0efp9)
3. You receive the XRD

### Won't the XRD run out of the LSU-LP/XRD shape liquidity pool?

So it could, but it's unlikely because of supply and demand and here's why... As more and more people use Instant Unstake the price of LSU-LP/XRD goes lower and lower. At *some point* it starts to become attractive to arbitragers or even plain stakers...\
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The staker (who wants to stake to a validator) can do the following:&#x20;

1. Swap their XRD for the now cheap LSU-LP tokens
2. Use the LSU-LP and remove liquidity from the LSU Pool and get more LSU than they would have via staking directly

The arbitrager (happy to wait it out for a return)

* Swap their XRD for the now cheap LSU-LP tokens
* Use the LSU-LP and remove liquidity from the LSU Pool and get more LSU than staking
* Unstake the LSU with the validator, wait the 7 days and pocket the yield difference

In fact, this is the 7 day XRD deposit we offer on the [Portfolio](https://www.caviarnine.com/portfolio) page.

<figure><img src="https://2889101437-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHNlgl7ttywm5Xh8uj9vm%2Fuploads%2Fvh1V7P7UEWI0cP1lSwpE%2FScreenshot%202024-04-14%20at%206.56.56%E2%80%AFPM.png?alt=media&#x26;token=2d0e7117-77c4-45b5-b235-6d03091be5f4" alt="" width="205"><figcaption></figcaption></figure>

### So what happens *if* the pool runs out of XRD?

Actually nothing exciting happens really. Just like any supply and demand situation, an asset can run out. So if XRD runs out then:<br>

* There's no XRD left so Instant Unstake becomes unavailable.
* The LSU-LP/XRD LP providers are now 100% holding LSU-LP tokens at the lower price for their range (currently around 0.9850).
  * These LP providers also have MORE LSU-LP tokens (because of the bonding maths)
  * They can go to the LSU Pool, remove liquidity and get MORE LSU back than they started with.
  * Unstake 50% of the LSU (with the validator) and in 7 days end up with more than what they started with...

### Where does the price have to be for LSU-LP/XRD for staking to be interesting?

If the price of LSU-LP/XRD is 0.9900 then a user can spend 99 XRD and get 100 LSU-LP tokens which are always worth at least 100 LSU tokens, which means they've made \~1% in 1 week. Hmm that's 67% APY 😁\
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You get the idea...

The LP's of this concentrated pool benefit by taking very little risk in exchanging the LSU-LP token back and forth for XRD. It's a win-win for everyone

### Fees for Instant Unstaking:

Given the actions above, we can breakdown the fees:

* Add Liquidity to LSUPool with LSU resource : Fee = 0
* Sell LSU-LP token for XRD in the ShapeLiquidity Pool : Fee currently 0.30%
