How to Redeem CoUSD [Experimental]
As of the previous snapshot voting result, we are going to re-enable CoUSD redeem.
Redeem mechanism is only functional when USDC+DAI collateral in our CollateralReserve contract exceeds the supply of CoUSD.
( In this case, collateral ratio is surely more than 100% as long as we believe DAI & USD value are both $1 )
A 5% fee is applied. More details about the fee is provided below.
How to redeem
Check the CollateralReserve contract on FTMScan.
https://ftmscan.com/address/0x183b3D03A50A26Fdd8Bfab283a6c9E3Fb9a34291
Decide token
Decide which token(USDC or DAI) you want to redeem for.
If lacking collateral, you cannot redeem.
Approve contract
CoUSD Contract is below, you need to access the contract on FTMScan.
https://ftmscan.com/address/0x0def844ed26409c5c46dda124ec28fb064d90d27#writeContract
1. Connect to Web3
2. Write “approve” method
There are 2 parameters.
- Contract address = spender (address)
- Approved amount = value (uint256)
Input 0xafaFC2EECEde012bf906E860B67aF549662b8EB2 as “spender”
Spender should be the address of the redeem contract.
https://ftmscan.com/address/0xafaFC2EECEde012bf906E860B67aF549662b8EB2
The “value” you provide should be more than the amount you want to redeem.
Please keep in mind the required decimal input.
- USDC should be 6 decimals
- DAI should 18 decimals
Example if you want to redeem 1 USDC
Input 100000 if you want to redeem 1 USDC
Example if you want to redeem 1 DAI
Input 1000000000000000000 if you want to redeem 1 DAI
3. Click “Write” after you input the necessary parameters.
Redeem CoUSD
1. Access the contract “redeemSimple” method.
https://ftmscan.com/address/0xafaFC2EECEde012bf906E860B67aF549662b8EB2#writeContract
2. Connect to Web3
3. Scroll down to the “redeemSimple” method.
There are 3 parameters.
- Redeem amount = cousd_amount (uint256)
- Token address ( USDC or DAI ) = col_token (address)
- Expected mim amount = col_out_min (uint256)
USDC address is 0x04068da6c83afcfa0e13ba15a6696662335d5b75
DAI address is 0x8d11ec38a3eb5e956b052f67da8bdc9bef8abf3e
Please keep in mind the required decimal input.
If you want to redeem 1 CoUSD for DAI you should input
- 1000000000000000000
- 0x8d11ec38a3eb5e956b052f67da8bdc9bef8abf3e
- 950000000000000000
If you want to redeem 1 CoUSD for USDC you should input
- 100000
- 0x04068da6c83afcfa0e13ba15a6696662335d5b75
- 950000
4. Click “Write” after you input the necessary parameters.
Please be aware that a 5% fee is applied when you redeem.
Example: 1 CoUSD equals 0.95 USDC or 0.95 DAI
The 5% redemption tax is for protocol safety.
There is a redeem threshold that allows users to redeem only when the CoUSD price on SpookySwap is less than $0.943333 because it is better to sell on the market.
Some parameters such as the fee and the redeem threshold may be prone to change depending on the circumstances and community agreement.
The fee might possibly be utilized to:
- Add CoUSD-USDC liquidity on SpookySwap
- Add CoUSD-USDC liquidity on CoffinSwap
- Add CoUSD collateral
- Buyback COFFIN
Currently, most of the collateral is DAI. So, USDC may be short.
If there are any issues, it will be suspended immediately without warning.
This experimental redeem function doesn’t mint additional COFFIN supply.
It only works when the collateral ratio is more than 100%, so we consider it experimental.
It could result in significant collateral and supply reductions.
The collateral in the CollateralReserve contract may be reduced, but so will the supply of CoUSD. As a result, the collateral ratio is expected to increase.
About CoffinSwap ( https://coffin.fi )
CoffinSwap is also an experimental swap to create COFFIN related liquidity.
We recently prepared this swap because our partnership protocol may utilize our tokens.
🔥Coffin is welcome to your suggestions, ideas and proposals.
🚀Please share them with us on our discord server so that we can work together to create good solutions.
❤️Thank you for your patience and continuing support.
🏆The best we can do is keep having discussions on discord in order to reach a mutually beneficial arrangement.
From the ⚰️ to the 🌙
#COFFIN #DeFi #Fantom $FTM #Crypto #WAGMI
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