Asset tokens can be burned and redeemed against USD stable coins at any time, if an equal amount of long and short tokens relating to the same ISSUAA asset is provided. This is done by calling the "burnAssets" function of the assetFactory smart contract. Parameters required are
- 1.The amount of tokens to be burned
- 2.The symbol of the assets to be burned
The amount of USD stablecoins to be redeemed equals the amount of tokens burned multiplied with the upper limit of the asset. When burning long and short tokens during the lifetime of such ISSUAA Assets, a fee of 2% of the burning transaction volume is applicable.
If an asset is frozen, USD stable coins can also be redeemed by burning only long tokens. In this case, the amount to be redeemed equals the upper limit of the asset multiplied by the number of long tokens that are burned. Given that the short tokens have become worthless, these will be burned as well, but their amount does not have to be equal to the amount of long tokens.
Every asset also has an expiry date, which is originally one year after the asset has been defined or created. When an asset is expired tokens can be burned by calling the function "burnExpiredAssets". Parameters require are
- 1.The symbol of the asset
- 2.The amount of long tokens
- 3.the amount of short tokens
The amount of USD stable coins to be redeemed is:
The amount of long tokens multiplied with the price of the asset at expiry time
the amount of short tokens multiplied with the delta of the upper limit of the asset and the price of the asset at expiry time.