☕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.