Minting & Redemption

Overview

Deploy's minting and redemption process governs the full lifecycle of its synthetic yield-bearing tokens (“dAssets”), such as dUSD.

Both operations are conducted through an permissioned flow that ensures:

• Every dAsset is 1:1 backed by verifiable collateral.

• All actions are KYC/KYB-gated and EIP-712 signed.

• Custody remains under institutional MPC control at all times.

Minting is automated and instant, while redemptions follow a two-phase settlement; custodians must first prefund the contract before redemptions are executed on-chain.

High Level Flow:

Detailed Flow:

Step 1 — Quote

• Backend returns a binding quote with fees, route (custodian), and caps.

Step 2 — User Signature (EIP-712 Order)

• User signs an order with: benefactor, beneficiary, token, amount, expectedOut, expiry, nonce, route.

  • (Mint): collateral token & amountIn → dAsset amountOut.

  • (Redeem): dAsset amountIn → collateral amountOut.

Step 3 — Backend Validation

• Verify signature, KYC/KYB status, nonce/expiry, whitelists, and per-block caps.

• Select authorized operational wallet: MINTER or REDEEMER.

Step 4 — Preconditions on Balances

• (Mint): User grants ERC-20 allowance; contract will transferFrom() collateral.

• (Redeem): Custodian prefunds the redemption contract balance first (required).

Step 5 — On-Chain Execution (DeployMinting.sol)

• Validate signature & route (must be whitelisted custodian).

• Enforce per-block ceilings / circuit breakers.

• Execute asset movement:

  • (Mint): Pull collateral from user → route to MPC custodian → mint dAssets to beneficiary.

  • (Redeem): burn dAssets from redeemer → transfer prefunded collateral to beneficiary.

• Emit MintExecuted / RedeemExecuted event.

Step 6 — Post-Trade Accounting

• Custodian:

  • (Mint): Allocates collateral to on-chain DN strategies.

Settlement Timing

• Mint: immediate (on-chain finality in the same transaction/block).

• Redeem: ~1 week standard operational window (prefunding + execution schedule).

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