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Mezo Documentation

MUSD Redemptions

How to Redeem MUSD on Mezo

Section titled “How to Redeem MUSD on Mezo”

Quick Overview

Section titled “Quick Overview”

Redeeming lets you burn 1 MUSD to recieve $1 in BTC (minus a 0.75% redemption fee and gas fees). The system redeems starting from the trove with the lowest collateral ratio above 110%. If the amount of MUSD exceeds a single trove, it will continue to redeem in ascending order of collateraliztion ratio.

Troves with collateralization ratios below 110% are eligible for liquidation, and cannot be redeemed against.

Prerequisites

Section titled “Prerequisites”

Before you start, verify:

  1. System is accepting redemptions: Go to TroveManager → “Read as Proxy” → call getTCR() with current BTC price. Must show ≥ 1100000000000000000 (110%)
  2. You have MUSD: Check your balance on the MUSD token contract
  3. Get current BTC price: Go to PriceFeed → “Read as Proxy” → call fetchPrice()
  4. Get correct contract addresses: See contract addresses at the bottom for both Mainnet and Testnet.

Step-by-Step Instructions

Section titled “Step-by-Step Instructions”

1. Go to TroveManager Contract

Section titled “1. Go to TroveManager Contract”

Open the TroveManager contract in your block explorer and click the “Write as Proxy” tab.

2. Find Function 11: redeemCollateral

Section titled “2. Find Function 11: redeemCollateral”

You’ll see 6 input fields. Here’s how to fill them:

Option A: Quick & Simple (Higher Gas)

Section titled “Option A: Quick & Simple (Higher Gas)”

Use this if you want to redeem quickly without calculating hints.

  • _amount: [your amount in wei - see conversion below]
  • _firstRedemptionHint: 0x0000000000000000000000000000000000000000
  • _upperPartialRedemptionHint: [your wallet address]
  • _lowerPartialRedemptionHint: [your wallet address]
  • _partialRedemptionHintNICR: 1100000000000000000000
  • _maxIterations: 0

Converting MUSD to Wei:

  • 100 MUSD = 100000000000000000000
  • 5,005 MUSD = 5005000000000000000000

Formula: Your amount × 1000000000000000000

Option B: With Hints (Lower Gas)

Section titled “Option B: With Hints (Lower Gas)”

Use this to save on gas costs.

Step 1: Get Redemption Hints

Section titled “Step 1: Get Redemption Hints”

Go to HintHelpers → “Read as Proxy” → getRedemptionHints()

Fill in:

  • _amount: Your amount in wei (same as above)
  • _price: Current BTC price from PriceFeed
  • _maxIterations: 50

Copy the returned values:

  • firstRedemptionHint
  • partialRedemptionHintNICR

Step 2: Get Position Hints

Section titled “Step 2: Get Position Hints”

Go to SortedTroves → “Read as Proxy” → findInsertPosition()

Fill in:

  • _NICR: Use the partialRedemptionHintNICR from Step 1
  • _prevId: Your wallet address
  • _nextId: Your wallet address

Copy the returned values:

  • upperHint
  • lowerHint

Step 3: Call redeemCollateral

Section titled “Step 3: Call redeemCollateral”

Go back to TroveManager → “Write as Proxy” → redeemCollateral

  • _amount: [your amount in wei]
  • _firstRedemptionHint: [from Step 1]
  • _upperPartialRedemptionHint: [upperHint from Step 2]
  • _lowerPartialRedemptionHint: [lowerHint from Step 2]
  • _partialRedemptionHintNICR: [from Step 1]
  • _maxIterations: 50

What You’ll Receive

Section titled “What You’ll Receive”

Example: Redeeming 100 MUSD

  • You burn: 100 MUSD
  • You receive: $99.25 worth of BTC (0.75% fee goes to protocol)

Formula: (Your MUSD Amount ÷ BTC Price) × 0.9925 = BTC received

Common Issues

Section titled “Common Issues”

“Cannot redeem when TCR < MCR” → System TCR is below 110%. Wait until it recovers.

“Unable to redeem any amount” → This can happen for several reasons:

  • No troves available with collateral ratio above 110%
  • Hints are out of date (specifically the NICR hint)
  • The redemption amount would leave the target trove with less than the minimum debt requirement of 1,800 MUSD
  • Max iterations set too low for the redemption size

Transaction runs out of gas → Lower _maxIterations to 10 or split into smaller redemptions.

Transaction reverts unexpectedly → Get fresh hints and try again. Someone may have redeemed before you.

Received less than expected → Check the Redemption event in your transaction. Some MUSD may have been returned if the last trove would go below 1,800 MUSD minimum.

Tips

Section titled “Tips”
  • Generate hints immediately before redeeming - They become stale if someone else redeems first
  • Use Option A for small amounts (< $10,000) - The higher gas cost is negligible
  • Use Option B for large amounts - Saves significant gas on big redemptions
  • Set higher maxIterations for larger redemptions:
    • Small (< 10 troves): 10
    • Medium (10-30 troves): 50
    • Large (30+ troves): 100

Contract Addresses

Section titled “Contract Addresses”
ContractMainnetTestnet
TroveManager0x94AfB503dBca74aC3E4929BACEeDfCe19B93c1930xE47c80e8c23f6B4A1aE41c34837a0599D5D16bb0
HintHelpers0xD267b3bE2514375A075fd03C3D9CBa6b95317DC30x4e4cBA3779d56386ED43631b4dCD6d8EacEcBCF6
SortedTroves0x8C5DB4C62BF29c1C4564390d10c20a47E0b2749f0x722E4D24FD6Ff8b0AC679450F3D91294607268fA
BorrowerOperations0x44b1bac67dDA612a41a58AAf779143B181dEe0310xCdF7028ceAB81fA0C6971208e83fa7872994beE5
PriceFeed0xc5aC5A8892230E0A3e1c473881A2de7353fFcA880x86bCF0841622a5dAC14A313a15f96A95421b9366
MUSD Token0xdD468A1DDc392dcdbEf6db6e34E89AA338F9F1860x118917a40FAF1CD7a13dB0Ef56C86De7973Ac503

All addresses are proxy contracts. Always use “Read as Proxy” or “Write as Proxy” tabs.

Need Help?

Section titled “Need Help?”