Minting and Redemption
Minting and redemption of VBUSD are fully decentralized and permissionless!
When users mint, the deposited WETH or wstETH is rebalanced to the proper ratio of long and short holdings based on the current ETH price. The user's wstETH or WETH then becomes part of the protocol's collateral, and the user receives VBUSD.
When users redeem, the proper ratio of wstETH and ETH short equity are sent to the user. For both minting and redemption, we use the Chainlink oracle to determine the USD/ETH exchange rate.
Minting
Token provided by users: WETH or wstETH
Token received by users: VBUSD
Minting fee: 0.4% to team/infrastructure, regardless of collateralization
Minimum transaction: 10 USD
Number of transactions required: 1
Redemption
Token provided by users: VBUSD
Token received by users: WETH + wstETH
Redemption fee: 0.4% to team/infrastructure, regardless of collateralization
Minimum transaction: 10 USD
Number of transactions required: 2
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