The difference between the Swap mechanism and the Mint & Redeem mechanism

VNST

2024-02-05

VNST operates primarily based on the Mint & Redeem mechanism instead of the conventional Swap mechanism. Let's explore the differences between these two mechanisms in the article below.

What is the Mint & Redeem Mechanism?

VNST operates flexibly through the Mint & Redeem mechanism. The Mint mechanism enables users to easily convert USDT into VNST, introducing a new means of payment and increasing the circulating supply of VNST.

The Redeem (Withdrawal) mechanism plays a crucial role in maintaining system stability. Users can convert VNST back into USDT through the Redeem process, reducing the circulating supply of VNST. This not only prevents inflation but also fosters balance and stability in the VNST operation. This is a positive step towards a flexible and sustainable digital financial model.

Read more about the Mint & Redeem guide here.

Especially in the initial stage, the project accepts a maximum of 100 billion VNST, ensuring liquidity and benefits for participants. This not only builds trust and confidence in the user community but also facilitates the sustainable development of VNST.

Similarities between Swap and Mint & Redeem Mechanisms

Swap and Mint & Redeem mechanisms share some similarities. Both serve the function of converting between VNST and other types of cryptocurrencies, especially between VNST and USDT. This allows users to easily conduct transactions and conversions between different types of assets in a flexible and efficient manner.

Differences between Swap and Mint & Redeem Mechanisms

The differences between the Swap and Mint & Redeem mechanisms are evident. While Swap focuses on converting between VNST and various cryptocurrencies without affecting the circulating supply of VNST, Mint & Redeem introduces a different approach.

Specifically, Swap does not impact the circulating supply of VNST, merely facilitating the conversion of assets. In contrast, Mint & Redeem plays a crucial role in adjusting the circulating supply of cryptocurrency. Through the Mint process, the circulating supply increases as users convert USDT into VNST, while through Redeem, the circulating supply decreases as VNST is converted back into USDT. This creates a flexible mechanism that can increase or decrease the circulating supply based on market demand and conditions, ensuring the stability of VNST.

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