ZooFinance
  • About ZooFinance
  • LNT VAULT
    • Backgroud
    • Product Design
      • Core Concept
      • How does LNT work
      • Pre-deposit
  • BeraChain Eco
    • Background
    • Liquidity Vault (L-Vault)
      • Stablecoin--ZUSD
      • Margin Token
      • Asset Adequacy Ratio
      • Deposit/Mint
      • Withdraw/Redeem
      • Interest Settlement
      • Price Trigger Yield
      • Discount Offer
      • Parameters
    • Bribe Vault (B-Vault)
      • Principal Token
      • Yield Token
      • Dutch-VAMM
      • Parameters
  • Security
    • Audit Report
Powered by GitBook
On this page
  • Stability Mode
  • Adjustment Mode
  1. BeraChain Eco
  2. Liquidity Vault (L-Vault)

Withdraw/Redeem

The protocol's asset redemption mechanism also consists of two modes: the stability phase and the adjustment phase.

Stability Mode

During the stability phase, users must hold a fixed ratio of ZUSD and xiBGT to redeem the corresponding iBGT from the Vault. For example, if a user wishes to redeem a certain amount of xiBGT, they need to pair it with the corresponding quantity of ZUSD, and vice versa. The calculation formula is as follows:

ΔZUSD=ΔxiBGT×MZUSDMxiBGT\Delta ZUSD = \frac{\Delta xiBGT \times M_{ZUSD}}{M_{xiBGT}}ΔZUSD=MxiBGT​ΔxiBGT×MZUSD​​

The amount of iBGT redeemed with the paired ΔxiBGT\Delta xiBGTΔxiBGT and ΔZUSD\Delta ZUSDΔZUSD is:

ΔiBGT=ΔxiBGT×MiBGTMxiBGT\Delta iBGT = \frac{\Delta xiBGT \times M_{iBGT}}{M_{xiBGT}}ΔiBGT=MxiBGT​ΔxiBGT×MiBGT​​

Example:

Based on the data from the previous example, where there are a total of 7 iBGT in the Vault, the protocol has generated 93.33 ZUSD, and 2.33 xiBGT, when a user wishes to redeem 1 xiBGT, they need to accompany it with ZUSD for redemption. The required amount of ZUSD to accompany the redemption is:

ΔZUSD=ΔxiBGT×MZUSDMxiBGT=1×93.332.33=40\Delta ZUSD = \frac{\Delta xiBGT \times M_{ZUSD}}{M_{xiBGT}} = \frac{1 \times 93.33}{2.33} = 40ΔZUSD=MxiBGT​ΔxiBGT×MZUSD​​=2.331×93.33​=40

Then, the amount of iBGT to redeem when accompanying 1 xiBGT with 40 ZUSD for redemption (assuming no transaction fees) is:

ΔiBGT=ΔxiBGT×MiBGTMxiBGT=1×72.33×1=3\Delta iBGT = \frac{\Delta xiBGT \times M_{iBGT}}{M_{xiBGT}} = \frac{1 \times 7}{2.33} \times 1 = 3ΔiBGT=MxiBGT​ΔxiBGT×MiBGT​​=2.331×7​×1=3


Adjustment Mode

When the protocol enters the adjustment phase, the user redemption rules change. If AAR rises above AARU, users can redeem xiBGT alone. The redemption quantity calculation formula is as follows:

ΔiBGT=ΔxiBGT×(MiBGT×PiBGT−MZUSD)MxiBGT×PiBGT\Delta iBGT = \frac{\Delta xiBGT \times (M_{iBGT} \times P_{iBGT} - M_{ZUSD})}{M_{xiBGT} \times P_{iBGT}}ΔiBGT=MxiBGT​×PiBGT​ΔxiBGT×(MiBGT​×PiBGT​−MZUSD​)​

If AAR falls below AARS, users can redeem ZUSD alone, and the quantity calculation formula is as follows:

ΔiBGT=ΔZUSDPiBGT\Delta iBGT = \frac{\Delta ZUSD}{P_{iBGT}}ΔiBGT=PiBGT​ΔZUSD​

In the extreme scenario where AAR falls below 100%, the USB redemption mechanism is as follows:

ΔiBGT=ΔZUSD×MiBGTMZUSDif AAR<100%\Delta iBGT = \frac{\Delta ZUSD \times M_{iBGT}}{M_{ZUSD}} \quad \text{if AAR} < 100\%ΔiBGT=MZUSD​ΔZUSD×MiBGT​​if AAR<100%

Excluding the two situations mentioned above, users still need to pair two assets together for redemption.

The redemption fee is 0.5%

PreviousDeposit/MintNextInterest Settlement

Last updated 9 months ago