---
title: "Redeem"
description: "Redeem burns an overlaid asset and returns the underlying stablecoin. Holders of the staking representation must unstake first — redeem is not unstake."
keywords:
  - "redeem"
  - "underlying stablecoin"
  - "backing"
  - "withdrawal"
canonical_url: https://docs.overlayer.fi/use_the_app/redeem
md_url: https://docs.overlayer.fi/use_the_app/redeem.md
last_updated: 2026-05-13T01:03:10.000Z
---

# Redeem

> Redeem burns an overlaid asset and returns the underlying stablecoin. Holders of the staking representation must unstake first — redeem is not unstake.

Redeem is the protocol-native way to return from an overlaid asset to the underlying stablecoin.

![Redeem](/assets/img/redeem.jpg)

:::warning Redeem is not unstake
If the user is holding the staking representation, they must first unstake and only then redeem.
:::

### What redeem does

The user burns the overlaid asset, the protocol computes the claim on the underlying, and the backing flow coordinates withdrawal from the external venue. Redemption follows deterministic on-chain rules rather than discretionary intervention.

### When to use redeem

Use redeem when:

* You want to exit an overlaid asset back into stablecoin.
* You want the protocol-native exit route.
* You do not want to rely on market liquidity to exit.

### How to redeem

1. Open the **Mint/Redeem** section from the side menu.
2. Set **Redeem** on the widget.
3. Select the Overlaid Asset you want to mint. 
4. Choose the supported collateral asset you want to deposit.
5. Enter the amount you want to mint. 
6. If this is your first time, click **Approve** and confirm the token approval in your wallet.
7. Once approval is confirmed, click **Redeem** and confirm the transaction.

### Costs and limits

* **Protocol fee:** 0%
* **Network fees:** Yes
* **Cooldown:** No
* **Lockup:** No
* **Per-block redeem limit:** 250,000*

*\* Per-block redeem limit can be changed with a 14 days notice period.*