How It Works

Overlayer works through four core actions: mint, redeem, stake, and unstake. These are the protocol-native operations, enforced on-chain and designed to be permissionless and deterministic.

1. Mint: A user supplies a supported underlying stablecoin and receives the corresponding overlaid asset at a deterministic ratio of 1:1.
2. Hold or use: The overlaid asset is liquid, non-rebasing, and transferable. It can be held, moved, or used across DeFi.
3. Stake: If the user wants yield, they stake the overlaid asset and receive the staking representation. Yield accrues via exchange-rate appreciation, not wallet rebasing.
4. Exit: The user can Unstake to return from the staking representation to the base overlaid asset, or Redeem to return from the overlaid asset to the underlying stablecoin.

Critical Distinction

• Unstake = exit yield participation.
• Redeem = exit the overlaid asset itself.