Choosing Between Swap and Redeem

Redeeming xlUSD

• User receives underlying stablecoins
• Protocol yield base decreases
• User retains XCEL / XCEL+ but stops earning yield on redeemed capital

Swapping or Providing Liquidity

• User remains liquid
• Protocol retains productive reserves
• Yield generation continues
• System TVL remains intact

Redemption is always available. Remaining inside the system is simply more attractive.