> For the complete documentation index, see [llms.txt](https://docs.vetro.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vetro.org/mechanics/minting-redemption.md).

# Minting & Redemption

## Minting Flow

```
Step 1: Swap any approved stablecoin (USDC, USDT) → Gateway
Step 2: Gateway mints VUSD at 1:1 minus a nominal minting fee
Step 3: Treasury allocates collateral → Redemption Buffer (20%) + Yield Strategies (80%)
```

Accepted collateral at launch: USDC, USDT. Planned additions: DAI, USDS, USDf, USD1.

Each whitelisted token is configured with:

* A dedicated yield vault
* A decentralized price oracle with configurable staleness period
* Independent swap-in/swap-out toggles

## Standard Redemption (Multi-Step)

Standard users follow a security-delay flow to prevent flash loan attacks and MEV manipulation:

1. **Initiate** — submit a redemption request specifying the desired stablecoin
2. **Wait** — governance-configurable security delay (\~6 blocks / 60–90 seconds)
3. **Finalize** — submit a second transaction to claim funds

Funds are pulled first from the Treasury's redemption buffer, then from deployed strategy assets if necessary. If combined liquidity cannot fulfill 100% of the request, the transaction fulfills the maximum available amount rather than reverting.

## Instant Redemption (Whitelisted Market Makers)

Whitelisted addresses bypass the security delay and execute instant, single-transaction redemptions. Instant redemptions are strictly limited to the current Treasury buffer balance — the protocol will not pull from yield strategies to fulfill instant requests.

## Treasury Allocation

| Destination       | Target Allocation | Purpose                                    |
| ----------------- | ----------------- | ------------------------------------------ |
| Redemption Buffer | 20%               | Instant redemptions, peg arbitrage support |
| Yield Strategies  | 80%               | Revenue generation via lending protocols   |


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