Redeeming Assets (before expiry)
This guide shows you how to interact with UMA protocol and redeem synthetic assets minted for the underlying collateral.
Only token sponsors that have created synthetic asset can redeem synthetic assets for collateral before the expiry date by paying off their debt. All other synthetic asset buyers can do so by selling the synthetic asset to the liquidity pool or wait for the settlement.
Click on 'Mint' on the navigation bar.
Select the synthetic asset that you want to burn and redeem the collateral, click on 'Manage'.
Select ‘Redeem assets’.
There are two options here, which is to redeem the synthetic assets partially or to fully redeem.
You are allowed to redeem partially from your debt size down to minimum sponsor token. In this example, the user has a debt of 199 pxUSD, and can redeem 0-99 pxUSD in partial redemption, or can redeem 199 pxUSD in full redemption.
Key in the synthetic asset to redeem, and click on 'redeem assets'
Approve the transaction.
You can see the debt amount and collateral size has gone down after the synthetic asset was redeemed.