> For the complete documentation index, see [llms.txt](https://octolsd.gitbook.io/octolsd-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://octolsd.gitbook.io/octolsd-docs/project-introduction/distribution/usdlsdd/redemption.md).

# Redemption

## Redemption

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.

<figure><img src="https://3277165271-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRF8NbgwXvRcL7V482OT8%2Fuploads%2FIMqand4I9zCZN4Op1683%2Fimage.png?alt=media&amp;token=f7b88b3a-5bf5-4978-9478-a81c6ec6d9e7" alt=""><figcaption></figcaption></figure>

### Redemption Provider

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.&#x20;

The advantages of being a redemption provider are as follows:

* $veOcto rewards.
* LSD interests.
* Your collateral ratio will become healthier.&#x20;