Minting & Redemption

The mechanisms for issuance and redemption of bentoX assets are designed to be both simple and transparent. Users are able to mint and redeem bentoX tokens directly through the Bento system, which operates in a permissionless manner without the need for a centralised issuer or counterparty. Anyone can provide the protocol with any of the collateral assets, or the entire basket, in exchange for bentoX tokens. Similarly, users can return bentoX tokens to the protocol and receive the desired collateral assets or the full basket. Additionally, bentoX tokens can be bought or sold on secondary markets through DEXs. The ability to mint and redeem bentoX tokens instantaneously ensures that the token's market price remains closely aligned with the value of the underlying basket of assets. Any price deviation from the basket’s value is quickly corrected by arbitrageurs, who capitalise on price differences in the secondary market to restore the token's peg.