sOUSD Redemption Mechanism

Redemption Process:

1. Request: Users submit a request to redeem sOUSD for the underlying OUSD.

2. Verification: The system verifies the sOUSD balance and eligibility for redemption.

3. Execution: Approved requests result in the user receiving an equivalent value of OUSD, and the corresponding sOUSD is burned.

Equations for Redemption:

Redeemable OUSD = sOUSD Amount × Current Conversion Rate

Automated Checks

To protect against sudden redemption spikes affecting the system's stability, automated checks and balances will control the rate of redemption based on current liquidity and market conditions.