Burn and redemption flow
Immediate redemption versus queued redemption at the AMM boundary.
Entry Point
Burns originate from AMM.exit(requestedEth, maxTokensToBurn, priceTolerance).
See the exit-path diagram for the liquidity-dependent branches.
The immediate branch needs unreserved ETH in the AMM. At the dated deployment snapshot, the AMM had none, so new exits take the queued branch.
If the AMM can satisfy the ETH request, the user receives ETH immediately and the lifecycle ends in a single transaction.
Why Slippage Matters More On Burn
Burn slippage is not just a UI display guard. It becomes protocol priceTolerance for queued
redemptions. If the keeper-priced batch falls outside that tolerance, the request can close instead
of redeeming ETH.
maxTokensToBurn caps the EVE input before either branch, including queued escrow.
Read next: Queued redemption lifecycle.
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