Mint and Redeem

Minting Synthetic Assets

1️⃣ Provide Collateral – Users deposit the backing asset + the Synth utility token. 2️⃣ Mint Synthetic Tokens – Based on the 95% collateral ratio, users receive xsS, xsAvax, or xsHype. 3️⃣ Use & Earn – Synthetic assets can be provided as liquidity or used in yield strategies.

Redeeming Synthetic Assets

1️⃣ Return Synthetic Tokens – Users submit their xsUSD, xsS, xsAvax, or xsHype to redeem collateral. 2️⃣ Receive Backing Tokens – The protocol releases stablecoin available such as USDC, S (Sonic), AVAX, or Hyper Liquid’s native asset, plus the utility token. 3️⃣ Risk Management Protections – Redemptions may be subject to dynamic controls during extreme volatility.

Both minting and/or Redeeming may be paused based on market conditions and for Risk Management.