> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stratareserve.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Redeeming srUSD

> How to redeem srUSD 1:1 for USDC on-chain.

srUSD is **redeemable 1:1 for USDC on-chain**. Redemption is permissionless and
enforced at the contract level — you do not need anyone's approval to redeem.

## The redemption path

<Steps>
  <Step title="Hold srUSD">
    Hold srUSD in a wallet on a supported chain.
  </Step>

  <Step title="Redeem through the pool">
    Submit a redemption against the USDC Redemption Pool. A minimum redemption fee
    (0.3%) applies, which is what sets the autonomous price floor near \$0.997.
  </Step>

  <Step title="Receive USDC">
    Receive USDC at the redemption rate. The redeemed srUSD is removed from
    circulation.
  </Step>
</Steps>

<Info>
  Redemption is for **USDC**, not for the underlying collateral. srUSD is
  non-redeemable for the silver or other reserves that back it — only for USDC.
</Info>

## Why redemption keeps the peg

Because anyone can redeem srUSD for USDC at the floor, any market price below the
floor is an arbitrage opportunity. Arbitrageurs buy the discount and redeem,
which removes supply and pushes the price back toward \$1 — without discretionary
intervention.

<Warning>
  The redemption pool has a finite capacity by design (\~\$50M at launch). Under
  extreme, sustained redemption pressure that exhausts the pool, the autonomous
  floor weakens. See [Collateral & Peg](/protocol/collateral-and-peg) for the
  full risk picture.
</Warning>

<Card title="srUSD monetary system" icon="coins" href="/protocol/srusd-monetary-system">
  How srUSD is issued and supply-controlled.
</Card>