Mint/Redeem

What Is Minting?

Crypto minting refers to the process of creating new units of a particular cryptocurrency. This method adds tokens into circulation, enabling them to be traded or used within its ecosystem.

On the Overnight.fi platform, Tokens+ can be minted in exchange for stablecoins at a 1:1 ratio. This can be done through the Mint section on the homepage.

To mint xUSD, the Arbitrum blockchain must be chosen.

The transferred USDC is sent to the PortfolioManager, where it is then deposited into the designated strategies.

How to Mint Tokens+

Follow these steps to mint Tokens+ on the Overnight platform:

1

Navigate to the Mint/Redeem Tab:

On the main page, locate and click the "Mint/Redeem" tab.

2

Select Tokens for Minting:

From the list of tokens in your wallet, select the ones you want to use for minting Token+. For example, to mint USDC+, you'll need USDC; for ETH+, you'll need ETH, and so on.

3

View Transaction Details:

In the window below, review the key details such as the exchange rate, Overnight fee, and the number of tokens you will receive after the transaction.

4

Approve and Mint: If prompted, approve the transaction in your wallet, then click the Mint button to complete the process.

Once the transaction is confirmed, your new Tokens+ will appear in your wallet.

Redeeming

The reverse process, called Redeeming, allows users to exchange Tokens+ back into stablecoins or ETH, and xUSD back into stablecoins. This can be done in the Redeem tab, effectively withdrawing funds from the strategies.

If necessary, the PortfolioManager will initiate the withdrawal process from strategies to gather the required amount of USDC for the return. If the collateral falls below the critical threshold, clients can receive a proportional share of assets from the Vault.