Redeem

• LETH can be used to redeem for stETH at 1:1 at anytime. Vaults will be arranged based on mint ratios (from high to low) to service redemption request.

• LETH price de-pegging encourages arbitrage actions that will close the de-pegging.

• A dynamic redemption fee will be charged based on each vault's mint ratio. 50% of the redemption fee will be used to compensate the vault owner from which the redemption is made, and the remaining 50% of the redemption fee will be used to further incentivize the liquidity providers. This split ratio of the redemption can be adjusted in future if required.

• There is a redemption availability quota which limits the maximum amount that can be redeemed at any given time.

  • The maximum redemption quota is 3% of total LETH supply.

  • If the redemption quota is utilized (i.e. below 3% of total LETH supply), it will be replenished automatically at a rate of 3%*total LETH supply / 24*60*60 per second.

  • This is to prevent the risk of massive redemption at once.