Redeem stable credit

Anyone who owns digital credit issued by a Velo associated TP can redeem their digital credit for VELO.Two pieces of information are needed to redeem:

  1. Asset code (digital credit name)

  2. Amount to be exchanged

Upon redemption, the amount of VELO that can be exchanged will be calculated based on:

  1. The amount of digital credit.

  2. The current exchange rate between the pegged currency of the fiat credit,VELO and pegged value.

  3. The collateral ratio of the collateral backing the digital credit.

    The formula used for calculation is similar to the one we use for mint, but there is no fee involved (i.e. fee = 0):

Workflow