Velo-Protocol
  • Welcome to Velo-Protocol
  • 🏀 GETTING STARTED
  • Prerequisite
  • Architecture
  • 🏀 BASE CONCEPTS
    • DRS Mechanism
    • Setup stable credit
    • Mint stable credit
    • Redeem stable credit
    • Rebalancing the Reserve and Collateral Pool
  • 🏀 USING CLI
    • Using CLI
    • Setup table credit
    • Mint stable credit
    • Redeeming stable credit
    • Rebalancing the Reserve and Collateral Pool
  • 🏀 USING SDK
    • Using SDK
    • Setup stable credit
    • Mint stable credit
    • Redeeming stable credit
    • Rebalancing the Reserve and Collateral Pool
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  • 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:
  • Upon redemption, the amount of VELO that can be exchanged will be calculated based on:
  • Workflow

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  1. BASE CONCEPTS

Redeem stable credit

PreviousMint stable creditNextRebalancing the Reserve and Collateral Pool

Last updated 4 years ago

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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

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