Repayment and Redemption

Repayment

When users open a Position and borrow USDA tokens, they have the option to make partial or full repayments of their debt. However, it is essential to ensure that the resulting debt balance after partial repayment does not fall below 300 USDA.

Successful repayment will trigger an immediate burn of the repaid USDA tokens through a fully decentralized smart contract. This process not only enhances the Position's collateral ratio but also increases the available collateral for withdrawal.

Redemption

USDA holders within Agilely have the flexibility to redeem 1 USDA for the equivalent of 1 USD in underlying collateral at any time. This decentralized process empowers users to conveniently tap into the true value of their assets. A redemption fee of (0.5% + baseRate) is applied.

Redemptions constitute an entirely distinct mechanism accessible to all USD holders, regardless of whether they have engaged in borrowing on the platform. The redemption process involves reducing the collateral vault associated with the lowest Collateral Ratio (CR), and it doesn't impact your debt position. In essence, your Collateral Ratio (CR) remains unchanged, featuring the same amount of collateral and borrowing—except in scenarios where your vault has the lowest CR among all vaults, specific to the collateral type.