BEEF

You can burn BEEF and take USDC at the oracle price, straight from the redemption vault above. No counterparty, no spread. It is bounded by what the vault holds, which is what buyers paid in — so a redemption larger than the vault fails outright rather than filling you at a worse price.

The keeper also quotes bids on this hub’s pool just under the oracle price, funded from pool fees and the protocol’s share. When the vault cannot cover a redemption, that pool is where the trade goes.

Separately, the redemption vault above holds the USDC that buyers paid in. Coverage is that vault measured against what buying back every circulating BEEF at the oracle price would cost. At rest it sits at 100%; it falls when BEEF rises, because the same dollars now owe more.

Both are finite. Coverage above is the vault measured against what redeeming every circulating BEEF at the oracle price would cost — it is the number that tells you whether a redemption will work right now. After a large upward move in the commodity it will not cover everyone, and the people who redeem first do best. Details.