Issuance & Redemption

When issuing & redeeming an index asset, the protocol handles calculations, swaps, mint/burning as well as maintaining all the underlying assets inside a vault.

A high-level asset / user flow is illustrated below.

1. Issuing an index asset

The contract issues an asset in six steps as visualized above.

Step 1: Contract receives an amount of KUJI or USK from user.

Step 2: Contract determines how much KUJI/USK is used to buy each assets based on stored index asset weights.

Step 3: Contract initiates the swaps on the swap venue (e.g. FIN).

Step 4: Contract receives swap output and adds it to the vault.

Step 5: Contract mints the index asset based on received asset amounts.

Step 6: Contract sends the index asset to the User.

2. Redeeming an index asset

Redemption of an index asset is done in five steps as visualized above.

Step 1: Contract receives an amount of KJI from user.

Step 2: Contract determines how much underlying assets are redeemed based on the total amount of underlying assets and total issued KJI.

Step 3: Contract initiates the swaps on the swap venue (e.g. FIN).

Step 4: Contract confirms the swap outputs & burns the KJI.

Step 5: User receives the USK/KUJI.