Continuum Logocontinuum
Basics

What Is Redemption?

The process of burning synthetic tokens to receive back the underlying collateral.

Definition

Redemption is how you exit synthetic positions and recover your collateral. You return the synthetic tokens to the protocol, which burns them and releases stablecoins based on oracle prices.

How It Works

Submit your synthetic tokens to the protocol's redemption function. The smart contract calculates the current value based on oracle prices and releases the corresponding stablecoin collateral.

In Continuum

To redeem at Continuum, you need equal amounts of L and S tokens. Burn them together to receive stablecoins at the current oracle price. This mechanism ensures the peg is maintained.

Related Terms

Minting

The process of creating new synthetic tokens by depositing collateral.

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

Get early access to Continuum and trade synthetic assets 24/7 on Solana.

Get Early Access