YUSD, issued by the Yeti Finance Protocol smart contracts under the governance of YETI tokenholders, is an over-collateralized stablecoin pegged to the U.S. dollar (USD) that is minted against a diversified portfolio of crypto collateral. [S1][S2]

YUSD targets a value of 1 USD and is not a yield-bearing or rebasing instrument; it does not accrue NAV. [S3][S2] Holders may earn ancillary returns by depositing YUSD into the Stability Pool, receiving a share of liquidated collateral plus YETI farming rewards. [S4] Borrowers minting YUSD bear a one-time deposit fee, a one-time borrow fee, daily interest from a 0.5% starting rate as of November 2, 2022, and redemption fees. [S5][S6]

Sapiens Research offers access to the protocol, with its Terms of Service governed by the laws of the British Virgin Islands. [S7] YUSD is issued algorithmically by smart contracts rather than by a single corporate balance sheet, and a holder's claim is the algorithmically enforced right to redeem YUSD for 1 USD of underlying collateral, minus fees. [S5][S3] The protocol is completely non-custodial; collateral is held in smart contracts with no named third-party custodian. [S5] The protocol and tokens are not offered to United States and United Kingdom persons or to sanctioned territories. [S7][S8]

YUSD operates on the Avalanche blockchain. [S1][S6] It is minted when a user deposits eligible collateral into a trove and draws debt, subject to a per-asset minimum collateral ratio as low as 105% and a 110% system minimum. [S1][S3] It is redeemed for collateral or swapped 1:1 against USDC via a Peg Stability Module. [S3][S4] Settlement is onchain on Avalanche. [S6]

<Sources
  retrievedAt="2026-06-24"
  items={[
    { id: "S1", url: "https://docs.yeti.finance/" },
    { id: "S2", url: "https://techdocs.yeti.finance/yeti-and-yusd/yeti-rewards-and-tokenomics" },
    { id: "S3", url: "https://techdocs.yeti.finance/how-does-yeti-finance-work/redemptions-and-yusd-price-stability" },
    { id: "S4", url: "https://docs.yeti.finance/yeti-and-yusd/protocol-mechanisms" },
    { id: "S5", url: "https://techdocs.yeti.finance/how-does-yeti-finance-work/general" },
    { id: "S6", url: "https://techdocs.yeti.finance/" },
    { id: "S7", url: "https://docs.yeti.finance/terms-of-service.md" },
    { id: "S8", url: "https://docs.yeti.finance/disclaimer-risks-and-yeti-yusd.md" },
  ]}
/>


# Asset redemptions methodology

## 1. Overview

The total value of tokenized assets that are burned or returned to issuer-controlled addresses in exchange for offchain collateral assets is measured by the asset redemptions metric. User demand to exit asset positions and reclaim backing collateral is reflected by this metric. Daily redemption volumes are aggregated across all supported blockchains and converted to USD using end-of-day price feeds. A comprehensive view of capital outflows from tokenized assets is provided by this metric.

## 2. Data sources

- **EVM chain events**: ERC-20 token transfers, covering EVM-compatible chains (Ethereum, Arbitrum, Base, Polygon, Optimism, and others)
- **Solana instructions**: SPL token burn instructions and balance changes
- **Non-EVM chain events**: Native token burn events, transaction net flows, and asset pallet events covering Algorand, Cardano, Injective, Near, Polkadot Asset Hub, Ripple, Stacks, Stellar, and Sui
- **Asset metadata**: Token addresses and decimal precision
- **External data**: End-of-day price feeds

## 3. Step-by-step calculation

### Component A: Extract raw redemption and burn events

- **Purpose**: Token destruction or return to issuer custody across all supported blockchains is identified.
- **Logic**: On EVM-compatible chains, ERC-20 `Transfer` events are parsed where the recipient is the zero address or the dead address. On Solana, SPL token `Burn` instructions are parsed. On Algorand, token transfers to non-circulating configuration addresses (such as creator or reserve addresses) are extracted. On Cardano, negative token deltas are derived from transaction outputs and inputs. On Injective, token transfers with a burn event type are selected. On Near, token burn events are extracted. On Polkadot Asset Hub, `Burned` events from the assets pallet are parsed. On Ripple, transaction net flows that result in issuer inflows are identified. On Stacks, token transfers where the recipient address is null are parsed. On Stellar, SEP-41 `sep41_burn` events are extracted. On Sui, negative deltas are derived from total supply changes of treasury control objects.
- **Key fields**: `timestamp` (event time), `token_address` (asset contract address), `amount` (raw quantity)

### Component B: Apply premint corrections

- **Purpose**: Raw burn volumes are adjusted to exclude non-circulating token movements and include circulation exits.
- **Logic**: For supported assets, raw burn volumes are adjusted by subtracting preburns and adding premint redemptions. Preburns, which represent tokens burned directly from issuer-controlled premint addresses without ever entering circulation, are subtracted from the total. Premint redemptions, which represent transfers from circulating addresses back into premint addresses, are added to the total as they represent assets exiting active circulation.
- **Key fields**: `timestamp` (event time), `token_address` (asset contract address), `amount` (corrected quantity)

### Component C: Normalization and USD conversion

- **Purpose**: Token quantities are normalized by decimal precision and converted to USD.
- **Logic**: Daily token-denominated redemption amounts are aggregated by timestamp, chain, and token address. These amounts are normalized by decimal precision retrieved from token metadata. The normalized redemption amounts are then multiplied by end-of-day price feeds sourced from market data providers to calculate the final USD-denominated redemption value. If no redemptions occur on a given day, the daily value is filled with zero values.
- **Key fields**: `timestamp` (day), `chain_id` (blockchain identifier), `token_address` (asset contract address), `amount` (normalized token quantity), `price_usd` (asset price), `value` (USD-denominated redemption value)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of assets redeemed or burned for underlying collateral.

Asset redemptions

Stablecoins

Yeti Finance enabled users to borrow YUSD against bundled yield-bearing collateral and distributed fees to YETI stakers; the protocol generated revenue from borrowing fees and redemption fees before becoming inactive.

Yeti Finance was a multi-collateral lending protocol on Avalanche issuing the YUSD stablecoin. The protocol has been inactive since 2023; YUSD remains on-chain with limited liquidity.

Yeti Finance was a borrowing protocol on Avalanche that allowed users to mint YUSD stablecoin against a portfolio of yield-bearing collateral assets. The protocol has been inactive since 2023.

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Lending

Yeti Finance

Yeti Finance YUSD (YUSD) is a U.S. dollar stablecoin issued by Yeti Finance.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Yeti Finance, and holders have a contractual right to redeem at par.

YUSD has been issued on Avalanche as an ERC-20 token since April 2022.

Yeti Finance YUSDYUSD