Fission Redeem

Background

Fission provides a 24/7 API-driven redemption liquidity service for integration partners (“Redeemers”) seeking programmatic RWA token redemptions. Redeemers integrate with the Fission API to access intra-period redemption liquidity at NAV minus liquidity fees, without waiting for the fund’s official redemption window.

Redeemers include on-chain leveraged vaults, lending protocols, asset managers, and any other party that holds tokenized fund positions and needs programmatic access to redemption liquidity.

How it Works

1. Real-Time Liquidity & Pricing Feed

   Fission exposes an API that returns, in real time:

   • Available redemption liquidity (USDC capacity)
   • Latest published fund NAV
   • Applicable transaction fee schedule

   Redeemers query this endpoint to determine whether sufficient liquidity is available and to calculate the net USDC proceeds after fees.

2. Redeemer Decision Logic

   The Redeemer’s system ingests this data and evaluates its own conditions for initiating a redemption. For example, an on-chain vault might evaluate de-leveraging thresholds, margin requirements, or NAV drawdown triggers. A vault may also expose an “instant redemption” option to its end users, allowing them to redeem intra-period rather than waiting for the fund’s scheduled window.

3. Redemption Request & Settlement

   The Redeemer initiates a redemption via the Fission API, specifying the token, chain, and amount. Fission supports two settlement workflows:

   • On-Chain Atomic (Pull): The Redeemer makes an API call to initiate the redemption. Fission prepares settlement funds and notifies the Redeemer via webhook when ready. The Redeemer’s smart contract then calls the Fission contract to atomically exchange tokens for USDC in a single transaction. See the On-Chain Pull guide for the full sequence diagram.

   • Off-Chain (Non-Atomic): The Redeemer initiates a redemption via an API call that returns a deposit address. The Redeemer sends the tokens to that address, and Fission delivers USDC settlement shortly thereafter. See the Off-Chain guide for details.

4. Issuer-Side Redemption

   Fission holds the redeemed tokens until the next formal redemption window and submits them to the fund issuer for cancellation and settlement. The Redeemer receives liquidity immediately, while Fission completes the issuer-side redemption off-chain.

Key Properties

• NAV-Based, Redemption-Only — Execution is at the official fund NAV, not the secondary market price. Transaction fees are variable and published by Fission, accessible in real time via the API.
• Liquidity-Aware — Redeemers can check available capacity before initiating redemptions. Both automated and user-initiated flows can be gated on real-time liquidity.
• Composable — Can be embedded as a safety valve in leverage loops, or function as an on-chain NAV-based liquidity backstop when secondary market liquidity is insufficient.

Example Use Cases

• Vault Operator / Strategy-Initiated Unwind — Automatic deleveraging when risk parameters (NAV drawdown, margin thresholds) are breached. Margin call protection for tokenized fund-backed lending strategies.
• User-Initiated Redemption — Vault customers redeem positions intra-period via an “instant payout” option in the vault UI.
• Asset Manager Rebalancing — Programmatic liquidation of RWA token positions as part of portfolio rebalancing.