Stablecoin Plumbing

These terms describe issuance, redemption, and the mechanisms that support a stablecoin peg.

Mint

Minting is the process of creating new tokens, typically when new collateral or cash enters a system.

Burning removes tokens from circulation, often when users redeem a stablecoin for collateral or cash.

Collateral is an asset pledged to back a loan, position, or stablecoin issuance, reducing counterparty risk.

A redemption window is the time and conditions under which a token can be exchanged for its backing asset.