# Redeem/Burning

To enjoy better USD liquidity or the possibility to exit the Unitas ecosystem, users might want to burn Unitas stablecoins (currently USD1, USD91, USD971, and USD84). The burning also has two types, both of which are in red in the figure: 

* **Type 1**: burn USD1 to redeem USDT
* **Type 2**: burn local stablcoins (USD91, USD971 and USD84) for USD1

<figure><img src="https://2630918718-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7x0z0t7tk4blphMgXGP7%2Fuploads%2Fc2omCuu9lL5sZTxYrJC0%2Fburning.png?alt=media&#x26;token=55f5087d-40bc-4b2c-9f54-4f929ba614c0" alt=""><figcaption></figcaption></figure>

Unlike the minting process, type 1 and type 2 are both unconditional, meaning that users can choose to leave the Unitas ecosystem on their will without any frictions.&#x20;

## Important features of Unitas burning process (for both types) <a href="#features-of-unitas-minting-process" id="features-of-unitas-minting-process"></a>

* the conversion experience is like a swap, and no CDP would be involved;
* the conversion happens at 100%, meaning that the burning tokens worth the tokens used for burning;&#x20;
* for type 1 burning: users will get USDT from the Reserve pool
  * if the Reserve pool does not have sufficient USDT, the protocol will utilize the USDT in Insurance pool USDT, which must be enough to cover since the reserve ratio > 100%
* burning incurs fee but there is no slippage;&#x20;
* the burning price of the same local stablecoins can be different across different times, this is because of foreign exchange fluctuations.
* burning is unconditional for both types&#x20;

For readers who are interested in more details but are still unclear about the burning process, here we specify a simple user journey to make things more concrete. &#x20;

### **User Journey**

**Journey of a type 1 burning**

1. User has USD1 in their wallet
2. User connects their wallet with the protocol
3. User will enter the amount of USD1 they want to burn
4. The protocol will deduct the USD1 from the wallet
   * the protocol will need user’s approval to utilize the USD1
   * once user approves, the protocol will deduct
   * there will be burning fee, to be set by the protocol

<figure><img src="https://2630918718-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7x0z0t7tk4blphMgXGP7%2Fuploads%2FcoCwzGcZU9g7b5TlYReS%2Fimage.png?alt=media&#x26;token=e9f214f4-7b10-4d7d-8e8b-c0d4d34594eb" alt=""><figcaption></figcaption></figure>

**Journey of a type 2 burning (using USD91 as example)**

1. User has USD91 in their wallet
2. User connects their wallet with the protocol
3. User will enter the amount of USD91 they want to burn
   * alternatively users will declare the amount USD1 they want to redeem
4. The protocol will deduct the USD91 from the wallet
   * the protocol will need user’s approval to utilize the USD91
   * once user approves, the protocol will deduct
   * there will be burning fee, to be set by the protocol

<figure><img src="https://2630918718-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7x0z0t7tk4blphMgXGP7%2Fuploads%2F4racE6o0VueDRS4jnGuN%2Fimage.png?alt=media&#x26;token=0c7d9577-8340-4a22-bd82-42a8a9562003" alt=""><figcaption></figcaption></figure>


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