Redemptions

Redemptions on TaoBank are not open to the public.

Redemption is an action of depositing $taoUSD into the Vaults of other users and withdrawing the equivalent value of collateral. Redemptions take place when a profit can be made by buying $taoUSD below peg to acquire collateral at $1 per $taoUSD.

When $taoUSD is redeemed for $wTAO, the system cancels the $taoUSD debt from Vaults, and the collateral asset is drawn from their collateral.

Protocol owned whitelisted addresses execute redemptions to prevent any exit of funds from the protocol.

Profits from redemptions will be used to increase the liquidity for $TBANK and $taoUSD.