How Minting & Redemption Works

Mint flow

1. You deposit USDG into the Blend contract.
2. A 0.30% deposit fee is deducted from the incoming amount.
3. The remainder is split across components according to their target weights and swapped into each underlying asset at live prices.
4. Blend tokens are minted to you in proportion to the value added: minted = deposited / basketValuePerToken.

Because minting buys the underlying at market, large deposits into thin components incur slippage. The interface shows the estimated tokens received before you confirm.

Redemption flow

1. You specify a quantity of Blend tokens to redeem.
2. The contract sells the corresponding pro-rata slice of every underlying component.
3. A 0.30% redemption fee is deducted from the proceeds.
4. Your Blend tokens are burned and USDG is returned to your wallet.

Fees at a glance

• Deposit — 0.30% of the amount deposited.
• Redemption — 0.30% of the proceeds returned.
• Secondary market swaps of the Blend token itself carry the pool's own swap fee, which is split between liquidity providers, the Blend creator, and the protocol buyback.