Burning / Redeeming TWIN asset tokens

The process of burning asset tokens within the TWIN Finance protocol is a straightforward operation that allows users to redeem them for USD stable coins. Below is an explanation of the process:

1. Calling the "burnAssets" Function: The same amount of long and short Asset tokens on the same underlying asset can be burned and exchanged for USD stable coins (USDC) at any time by using the "burnAssets" function of the assetFactory smart contract. This action requires two key parameters:

● The quantity of tokens to be burned.

● The symbol of the assets to be burned.

1. Early Redemption Fee: When burning (the same amount of) long and short tokens during the lifetime of TWIN assets, a 2% fee is applied to the transaction volume.

2. Redemption of Frozen Assets: If an asset is frozen due to the price exceeding the upper limit, USD stable coins can still be redeemed by burning only long tokens. In this case, the redemption amount is calculated as the upper limit of the asset multiplied by the number of long tokens burned. Short tokens, having become worthless, are also burned, but their quantity does not need to match the number of long tokens in this particular case.

3. Asset Expiry: Each asset within the TWIN Finance protocol has an expiry date, initially set to one year after the asset's creation. When an asset expires, tokens can be burned by invoking the "burnExpiredAssets" function. This action requires three parameters: - The symbol of the asset. - The quantity of long tokens. - The quantity of short tokens.

4. Redemption at Expiry: The amount of USD stable coins to be redeemed at expiry is calculated as follows: - The quantity of long tokens multiplied by the asset's price at the time of expiry. - Plus, the quantity of short tokens multiplied by the difference between the upper limit of the asset and the asset's price at the time of expiry.