You might be asking, what happens when my vault gets redeemed?
And do I lose all of my PLS?
The answer is no.
And the extra PLS gets sent to the Collateral Surplus Pool.
Any USDL holder can redeem their tokens directly for PLS at face value (minus fees).
When redeemed, USDL debt is canceled from the selected Vaults and PLS collateral is withdrawn to fulfill the request.
Vaults are redeemed in ascending order of collateralization ratio. A redemption sequence will fully redeem up to n-1 Vaults, and partially redeem 1 Vault.
Redemptions are blocked if TCR < 110% to prevent attackers crashing the system. Note redemptions are also disabled for the first 14 days after deployment.
If your vault is redeemed against:
The final event that happens is that your excess PLS is sent to the Collateral Surplus Pool, where you can claim it later.
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Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.
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