Shell Finance
  • Overview
    • What is Shell Finance
    • Why Shell Finance
    • What is $sUSD?
  • User Guide
    • How to Borrow
    • How to Repay
    • Auction Guide
    • How to Swap
  • Lending Mechanics
    • Borrow
    • Repay
    • Auction
  • FAQ
    • Product FAQ
  • Concepts
    • Partial Signed Bitcoin Transaction (PSBT)
    • Discreet Log Contract (DLC)
    • Oracle
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  1. Lending Mechanics

Repay

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Last updated 6 months ago

Redemption refers to the process where users repay their $sUSD debt and retrieve their collateral. For example, consider a user who has borrowed 600 $sUSD against the collateral of 30 $ORDI tokens under the BRC-20 asset class. When the user decides to repay this loan, they only need to pay back 600 $sUSD to the protocol. Subsequently, both the protocol and the user will co-sign to unlock the vault, thereby retrieving all the pledged assets. Simultaneously, the protocol triggers the price oracle to terminate the corresponding Discrete Log Contract (DLC) process.