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When redeeming, the user provides QSD tokens to the system, selects the corresponding collateral, and executes the redemption action. Through redemption, users can use QSD to exchange certain collateral and KUN tokens from the collateral pool. In the initial stage of the system startup, the KUN tokens obtained from redemption will be encapsulated by the KBT token, which can be converted into KUN tokens under certain conditions.
Since QIAN V2 supports multiple collaterals, the system will allow users to choose specific collateral to redeem. If a certain amount of collateral is completely redeemed and the user’s redemption goal cannot be fulfilled, the user can continue to select other collateral for redemption until all redemption operations are completed.
Redeeming QSD is done by rearranging the previous system of equations, and solving for the units of collateral,
, and the units of KBT.
is the ratio of the total value of collateral
to the total value of all collateral assets;
is the units of collateral
in the system;
is the price of collateral
is the units of QSD redeemed;
is the ratio of the collateral in the protocol;
is the number of KBT tokens minted when redeeming;
is the market price of the KUN token, provided by the weighted average prices of DEX pool.
On the Binance Smart Chain, if 10,000 QSD are needed to redeem, there are total collateral of 20,000,000 BUSD( $1/BUSD), 5,000,000 BNB($40/BNB), and 1,500 BTCB($37,000/BTCB) in the system, and the proportion of collateral ratio is 50%. The price of KUN is $0.5/KUN.
If the redemption collateral selected by the user at the beginning is BTCB, there are:
Under the above conditions, redeeming 10,000 QSD will get 0.135135135 BTCB, and newly-minted 10,000 KBT to the redeemer.