aUSD Destruction (Redemption)

Redemption refers to converting aUSD back into the original asset.

• Eligibility: Only the original minter can redeem.

• Requirement: The user must use their aUSD to redeem the original assets they previously deposited.

• Flexibility: Multiple partial redemptions are allowed, but the asset type must match the original deposit.

• Fees: All redemption operations incur fees, which are deducted in aUSD.

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Redemption Fee Formula

The redemption fee (FEE) is calculated as follows:

FEE = REDEEM_VALUE × (BASEFEE × DISCOUNT_RATE) + 1 aUSD

Where:

• REDEEM_VALUE: The USD value of the redeemed amount.

• BASEFEE: Base fee rate, determined by pool reserves.

• DISCOUNT_RATE: Discount multiplier, based on lock-up duration.

• 1 aUSD: Fixed fee applied to every redemption.

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Base Fee (BASEFEE) Calculation

The base fee(BASEFEE) is calculated as follows:

BASEFEE = MAX_FEE – (MAX_FEE – MIN_FEE) × (RESERVES_VALUE / RESERVES_TARGET_VALUE)

Where:

• RESERVES_VALUE: Liquidity remaining in the pool after this redemption (in aUSD).

• RESERVES_TARGET_VALUE: Target reserve level, typically 20% of the pool’s total funds.

• MAX_FEE = 1% (maximum fee)

• MIN_FEE = 0.1% (minimum fee)

If RESERVES_VALUE > RESERVES_TARGET_VALUE, BASEFEE defaults to MIN_FEE.

Discount Rate (DISCOUNT_RATE)

The discount rate incentivizes longer lock-up durations. The longer the assets remain deposited, the lower the redemption fee.

Lock-up Period	Discount Rate
< 1 day	200%
1 ~ 7 days	100%
7 ~ 30 days	80%
30 ~ 60 days	70%
60 ~ 90 days	60%
90 ~ 180 days	50%
180 ~ 360 days	40%
360 ~ 720 days	30%
720 ~ 1440 days	20%
> 1440 days	10%