Continuum Logocontinuum
Basics

What Is Redemption?

Hand the tokens back, get the collateral out.

Definition

Redemption is the exit. You hand the synthetic tokens back, the protocol destroys them and releases collateral at the oracle price. It is also the reason the price holds: anyone can do this, at any time, at NAV.

How it works

Send the tokens to the protocol's redeem instruction. It values them at the current oracle price and pays out the matching collateral.

In Continuum

Redeeming on Continuum takes equal amounts of L and S. Burn the pair, receive stablecoins at the oracle price. Holding only one leg means buying the other before you can get out this way, though you can always just sell the leg you hold into its pool.

Related terms

Minting

Put collateral in, get new synthetic tokens out.

Collateral

Assets deposited to back or secure a financial position.

Oracle

A service that brings off-chain data (like prices) onto the blockchain.

More basics terms

Synthetic AssetLong Token (L Token)Short Token (S Token)Collateral

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