sivoUSDX can be redeemed in two ways depending on your liquidity needs. The Sivo protocol maintains a reserve of approximately 20% of assets in liquid stablecoins to support normal redemption activity.
When you redeem through the protocol, your request is fulfilled from this reserve whenever sufficient liquidity is available. This allows most users to exit directly through the protocol without relying on secondary market liquidity.
If redemption demand exceeds available reserve balances, redemption requests may be processed as underlying receivables repay and liquidity returns to the protocol.
For users who require immediate liquidity, sivoUSDX can also be traded on the sivoUSDX/USDC Uniswap pool. This pool is supported by liquidity providers (LPs) who supply USDC and sivoUSDX liquidity in exchange for:
Trading fees generated by the pool
Yield earned on the sivoUSDX they provide
Additional liquidity incentives distributed by the protocol
Instant redemption fees paid by users who choose immediate liquidity
By providing these incentives, Sivo encourages LPs to maintain deep liquidity in the pool, allowing users to access instant redemptions without waiting for protocol liquidity to become available.
This dual-liquidity model allows sivoUSDX holders to choose between maximum redemption value and immediate access to liquidity.