# 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.*** --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.piku.co/piku/piku/minting-and-redemption.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.