# Minting and Redemption

**Overview**

Minting and redeeming are the core mechanisms that maintain the USP stablecoin’s 1:1 relationship with underlying reserve assets in the Piku ecosystem. Through these actions, users can **create (mint)** new USP tokens by depositing supported assets, or **redeem** their USP holdings back into the reserve assets. This process ensures transparency, price stability, and smooth liquidity management within the protocol.

**Minting** 

Piku facilitates a straightforward USP minting process for KYC/KYB-verified users directly through its platform. During launch, USD stables will be used to mint USP. The minting process is designed to be instantaneous and executed on-chain, with the current minting fee set at 0%.

**Redemption**

When redeeming USP, the amount of USP requested for redemption will be burned and USD Stable will be returned. The redemption process incorporates a T0 + queue system. Redemption fee will be applied as 0.2%. The redemption fee will be added back to the backing of USP to incentivize long term USP holding.

***Redemptions are processed within 24 hours.***