Redemption Mechanism
TLDR: Swap 1 $USC for USD 1 worth of $cdcETH - any time
Last updated
TLDR: Swap 1 $USC for USD 1 worth of $cdcETH - any time
Last updated
Think of redemptions like a one-sided swap on a DEX. You can only swap $USC for $cdcETH, but not the other way around. For steps on using the Redemption feature, please click .
How It Works:
1 $USC can always be redeemed for USD 1 worth of collateral on Orby’s platform.
This Redemption Mechanism helps maintain the $USC peg when its value falls below USD 1.
Users can buy discounted $USC from the market and redeem it 1:1 for USD worth of the underlying collateral, helping to push the price back to peg.
Orby’s page will show $USC to cdcETH rate comparison from different sources so you can get the best redemption rate.
Key Points:
Anyone can use redemptions, but a variable fee may apply.
The redemption fee changes based on the Base Rate and increases with each redemption event.
Typically, users redeem when $USC trades below peg to make it economically viable.
Redemption vs. Repayment:
Repayment: You your own $USC debt within your shuttle.
Redemption: You swap $USC 1:1 for someone else’s collateral.
Collateral comes from the “unhealthiest” shuttles (those with the lowest collateral ratio) first.
Important: Redemptions are as repaying one’s $USC debt.