Minting and Redemption

How Does it work?

Flow

Minting

Anyone who holds TBYs can mint stTBY at a ratio of 1:1 tokens.

For example:

A user holds 100 TBY for a specific duration. TBYs, despite having different maturities and being different tokens depending on the maturity, are considered fungible by the protocol in terms of minting power. Minting can occur at any time with any active TBY.

Once TBYs are in the protocol, they are managed. To manage them, they are simply deployed in the newest Bloom Pool until maturity. When a maturity tranche of TBYs matures, the protocol automatically redeems them for the underlying USDC principal and interest.

Redemption

At any point, a user can request a redemption. Redemption requests are added to a queue, with a first come first serve logic. Based on your stTBY ownership, you can redeem a pro rata amount of the underlying USDC, upon the next maturity date.

TBY Schedule has a list of all of the maturity dates.

TBYs will be minted and redeemed on a fixed schedule (above). The reason for this is to be compatible with the rolling schedule and remain as efficient as possible for stTBY.