💰Redemptions

Step 1: Assessing Your Position

Before beginning the redemption process, it's crucial to evaluate your current standing within the Gas Bet Protocol. Make sure that:

• Position Status: Your collateralized debt position (CDP) is in good standing, meaning it is not under-collateralized or at risk of liquidation.

• Market Conditions: Review the market conditions, particularly if you plan to sell your Basefee tokens before redemption. The value of these tokens may fluctuate based on Ethereum network congestion.

Step 2: Repaying the Debt

To redeem your wstETH, you first need to return the Basefee derivative tokens you minted. This involves repaying the "debt" created when you initially minted these tokens.

• Visit the Protocol's Interface: Log into your account on the Gas Bet Protocol platform, and navigate to the section that displays your CDPs.

• Initiate the Repayment: Choose the option to repay your debt. Specify the amount of Basefee tokens you are returning to the protocol, which will effectively burn them. This amount should match the tokens you initially minted, plus any accrued fees.

Step 3: Confirming the Transaction

Once you initiate the repayment, you will need to confirm the transaction, allowing the protocol to burn the Basefee tokens and update your CDP accordingly.

• Review the Details: Double-check the amount of Basefee tokens you are repaying and any associated transaction fees. Make sure you are covering the total amount required to fully close your position.

• Execute the Repayment: Confirm and submit the transaction. Wait for it to be processed, which may take some time.

Step 4: Redeeming Your Collateral

With the debt repaid, your wstETH collateral is no longer tied up in the CDP, and you can now withdraw it from the protocol.

• Initiate the Withdrawal: In the protocol's interface, locate the option to withdraw collateral. Enter the amount of wstETH you wish to redeem.

• Confirm the Withdrawal: Review the transaction details to ensure everything is correct. Confirm and execute the withdrawal transaction, then wait for the process to complete.