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Mezo Documentation

MUSD Redemptions

How to Redeem MUSD on Mezo

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

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

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

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

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)

Use this to save on gas costs.

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

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

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

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

“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

  • 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

ContractMainnetTestnet
TroveManager0x94AfB503dBca74aC3E4929BACEeDfCe19B93c1930xE47c80e8c23f6B4A1aE41c34837a0599D5D16bb0
HintHelpers0xD267b3bE2514375A075fd03C3D9CBa6b95317DC30x4e4cBA3779d56386ED43631b4dCD6d8EacEcBCF6
SortedTroves0x8C5DB4C62BF29c1C4564390d10c20a47E0b2749f0x722E4D24FD6Ff8b0AC679450F3D91294607268fA
BorrowerOperations0x44b1bac67dDA612a41a58AAf779143B181dEe0310xCdF7028ceAB81fA0C6971208e83fa7872994beE5
PriceFeed0xc5aC5A8892230E0A3e1c473881A2de7353fFcA880x86bCF0841622a5dAC14A313a15f96A95421b9366
MUSD Token0xdD468A1DDc392dcdbEf6db6e34E89AA338F9F1860x118917a40FAF1CD7a13dB0Ef56C86De7973Ac503

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

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