Minting & Redemption
Minting Process
The minting of BUSDX is permissionless and executed via smart contract. Users interact with the minting interface by depositing collateral at a required minimum collateralization ratio of 150%.
Example:
If you deposit 150 USDT worth of BNB, you may mint up to 100 BUSDX.
The system automatically calculates real-time asset value using decentralized oracles and verifies the required overcollateralization.
Redemption Process
When a user chooses to exit their position:
Return the desired amount of BUSDX to the protocol.
The protocol calculates the current exchange rate and unlocks the proportional amount of collateral.
A small redemption fee may apply, dynamically adjusted based on liquidity, volatility, and protocol health.
Redemptions are:
Non-custodial: No intermediaries involved.
Instantaneous: Once conditions are met, redemption executes directly.
Transparent: All transactions are verifiable on-chain via explorer tools.
Last updated