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
KYC and AML Checks:
Users must complete KYC and AML checks.
The user's Stable account must be topped up with fiat.
Minting Request:
Users request the minting of stablecoins.
Verification:
We verify the user's fiat balance on Stable Labs's platform.
Treasury Request:
A request is sent to the treasury to issue stablecoins.
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
Redemption Request:
A registered and KYC-verified user requests redemption.
Transfer to Treasury:
The stablecoins are transferred to the treasury.
Proof of Reserve (PoR) Update:
The PoR is updated.
Fiat Credit:
The fiat balance is credited to the user's Stable Labs account.
Withdrawal:
The user can withdraw the credited fiat to their bank account.
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