# Instant Redemption

### Overview

Instant Redemption is a universal instant redemption mechanism designed to provide any user holding an Upper-Layer Asset with an on-chain asset redemption channel that completes instantly without waiting for off-chain processing. An Upper-Layer Asset typically refers to a wrapped or derivative token whose value is backed by another "reserve asset." This solution achieves instant exchange from an Upper-Layer Asset to its corresponding underlying Reserve Asset through a Safe Vault and a InstantRedemption Contract, authorized off-chain by Auditors.

The core advantage of this solution is that it resolves the delay issues common in traditional redemption processes, which are often caused by off-chain approvals, providing users with an efficient and reliable liquidity exit.

### Core Concepts

#### Upper-Layer Asset

A token that represents ownership or rights to a reserve asset. It is usually created through methods such as wrapping, staking, or other derivatives. For example, the yield-bearing token BTC+ can be considered an upper-layer asset, as it represents ownership and earnings rights over its Reserve Asset, SolvBTC.

#### Reserve Asset

The underlying token that backs the value of an Upper-Layer Asset. In theory, an Upper-Layer Asset can be redeemed for a Reserve Asset according to specific rules. For example, the underlying Reserve Asset for the wrapped token SolvBTC is various forms of Wrapped BTC (WBTC/BTCB, etc.).

### Technical Architecture and Core Components

The following diagram illustrates the overall architecture and workflow of the Instant Redemption system:

<figure><img src="/files/LivNBvytSfQ8GCYP7gEC" alt=""><figcaption></figcaption></figure>

The Instant Redemption technical solution involves the following core smart contracts and participants:

* **Instant Redemption Contract** - The core contract that handles Instant Redemption requests, responsible for coordinating token burning and the transfer of reserve assets.
* **Upper-Layer Asset Contract** - The official contract for the Upper-Layer Asset (e.g., BTC+, SolvBTC) held by the user. It handles the burning of the token to ensure that the destroyed tokens are permanently removed from circulation.
* **Reserve Asset Contract** - The token contract for the underlying Reserve Asset (e.g., SolvBTC, WBTC, BTCB, etc.).
* **Safe Vault** - A multi-signature Safe wallet specifically used to store the underlying Reserve Asset, providing liquidity for Instant Redemption.
* **Auditors** - The multi-signature managers of the Safe Vault, responsible for approving the transfer of the user's requested Reserve Asset from the Safe Vault to the InstantRedemptionContract based on the Safe's multi-signature mechanism.
* **Upper-Layer Asset Holder** - The user who initiates the Instant Redemption request.

### Technical Implementation Flow

The technical implementation flow of Instant Redemption is as follows:

#### 1. Initiate Instant Redemption

A user holding an Upper-Layer Asset calls the InstantRedemptionContract to initiate an Instant Redemption request, specifying the amount of tokens they wish to redeem.

#### 2. Burn Upper-Layer Asset Token

Upon receiving the request, the InstantRedemption Contract immediately calls the burn method of the corresponding Upper-Layer Asset Contract to destroy the equivalent amount of the Upper-Layer Asset from the user's account.

#### 3. Request Reserve Token

After the Upper-Layer Asset is burned, the InstantRedemption Contract calls the transferFrom method of the Reserve Asset token contract to request the transfer of the Reserve Asset from the Safe Vault.

#### 4. Approve and Transfer

Auditors complete the approval via the Safe multi-signature wallet to transfer the user's requested Reserve Asset from the Safe Vault to the InstantRedemption Contract. Upon receiving these assets, the InstantRedemption Contract immediately sends them to the user's address that initiated the redemption request.

### Business Scenarios

#### Scenario 1: Yield-Bearing Certificate Redemption

* Upper-Layer Asset: BTC+
* Reserve Asset: SolvBTC

Flow: The user burns BTC+ through this solution to instantly receive SolvBTC stored in the Safe Vault liquidity pool.

#### Scenario 2: Wrapped Asset Redemption

* Upper-Layer Asset: SolvBTC
* Reserve Asset: WBTC/BTCB, etc.

Flow: The user burns SolvBTC through this solution to instantly receive WBTC/BTCB, etc., stored in the Safe Vault liquidity pool.

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