Redemption

Redemption is defined as the destruction of USDV to redeem underlying tokenized RWA.

Impact on USDV circulation: Reduce (-)

By destroying USDV, the underlying asset is unlocked from the Vault. USDV of any color can be used for redemption.

Redemption occurs in a single atomic transaction as follows:

• A user deposits $K USDV of any color (e.g., USDV_BLUE) to redeem.

• $K STBT is unlocked. A Redemption Fee is deducted from the unlocked STBT, and the remaining balance is sent to the receiver.

• $K Vault Shares are removed from USDV_BLUE.

Redemption is currently exclusive to the Ethereum network, and only STBT is available for redemption.

Redemption fee is applicable. See Fees for more details.