Stablecoin Minting & Redeeming

The architectural design for stablecoin minting and redemption on Stable Labs involves two primary contracts: the Treasury contract and the Stablecoin contract, both managed by a multi-signature wallet. Only clients who have passed KYC and AML screenings can mint or redeem stablecoins.

Minting Process

  1. KYC and AML Checks:

    • Users must complete KYC and AML checks.

    • The user's Stable account must be topped up with fiat.

  2. Minting Request:

    • Users request the minting of stablecoins.

  3. Verification:

    • We verify the user's fiat balance on Stable Labs's platform.

  4. Treasury Request:

    • A request is sent to the treasury to issue stablecoins.

  5. Issuance:

    • If the treasury has enough authorized stablecoins, they are issued to the user.

    • If not, or if the requested amount is too high, the request goes to a multi-signature wallet, which authorizes the necessary amount of stablecoins to the treasury.

Redemption Process

  1. Redemption Request:

    • A registered and KYC-verified user requests redemption.

  2. Transfer to Treasury:

    • The stablecoins are transferred to the treasury.

  3. Proof of Reserve (PoR) Update:

    • The PoR is updated.

  4. Fiat Credit:

    • The fiat balance is credited to the user's Stable Labs account.

  5. Withdrawal:

    • The user can withdraw the credited fiat to their bank account.

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