Redemption
Last updated
Last updated
Redemption is exchanging $LSDD for ETH at face value as if 1 $LSDD is exactly worth $1. In other words, for 1 $LSDD, you can always get 1 dollar worth of ETH in return.
There is no limit to redemption. Holders of $LSDD can redeem their $LSDD for ETH at any time. And no redemption fee is charged.
It is to be noted that redemption and repayment are two totally different processes. Redemption means exchanging $LSDD for ETH at face value, while repayment is the adjustment of collateral and debt.
Minters can choose to provide redemption and cancel it at any time. Being a redemption provider, you will lose a portion of your collateral, but your $LSDD debt will be reduced accordingly.
The advantages of being a redemption provider are as follows:
$veOcto rewards.
LSD interests.
Your collateral ratio will become healthier.
