Redemption Rate and Shortfall Socialization

The redemption rate is applicable when users swap from 0xUSD to underlying. It is not applied when users go from underlying to 0xUSD (in that case, tin fee is applicable).

Dynamic Redemption Rate (update on redemption)

• Triggered only on 0xUSD → underlying conversions.

• The engine updates baseRedemptionRate proportionally to the redeemed fraction of total 0xUSD supply and decays it over time (~0.5% hourly, capped, e.g., 5%).

Economically, it is a stress meter: heavy redemptions raise the rate; quiet periods let it decay.