Redeeming $GNDX

Pre-launch — forward-looking

GNDX Protocol has not yet deployed to mainnet. The instructions and flows on this page describe how redemption will work once the dApp is live on Arbitrum One. Get notified when we launch.

Redeeming $GNDX means burning your tokens and receiving your proportional share of the underlying basket (or USDC, or a specific overweight token with a bonus).

Three Redemption Paths

Path	What You Receive	Fee	Best For
Basket Redemption	Proportional share of every basket token	0.20%	Long-term holders wanting direct exposure
USDC Redemption	USDC (basket sold via Uniswap V3)	0.20% + DEX slippage	Holders wanting immediate liquidity
Overweight Redemption	A single overweight basket token	0.00% net (bonus of 0.22%)	Arbitrageurs correcting overweight positions

Basket Redemption

The simplest and most resilient path. You receive a proportional share of every token in the basket, sent directly from IndexVault to your wallet. No DEX swap, no slippage.

• No DEX swap — tokens sent directly from vault
• No slippage risk — you receive exactly your proportional share
• Always available — basket redemption works even during oracle outages (with the maximum exit fee of 0.50% applied as a conservative penalty when oracle health cannot be assessed)
• You will receive multiple tokens (one per basket token)
• 0.20% exit fee when oracle is healthy; 0.50% when oracle feeds are stale

Oracle Outage?

If Chainlink feeds are temporarily stale, USDC and overweight redemption paths are paused (they need oracle prices for swap slippage). But basket redemption remains available — it uses pure proportion math that needs no price data. The elevated fee compensates for the inability to assess crisis status.

Best for: Long-term holders who want direct exposure to the underlying tokens, or who need to exit during oracle outages.

USDC Redemption

Your proportional basket share is sold via DEX adapter and you receive USDC. Convenient for immediate liquidity, but subject to DEX slippage on the basket token sales. Requires healthy oracle feeds (paused during oracle outages).

• 0.20% exit fee
• DEX slippage (varies by basket token liquidity)
• Single USDC output — no need to manage multiple tokens

Best for: Holders who want to exit cleanly into a single stable asset.

Overweight Token Redemption

When a basket token is more than 5% overweight (above its target weight), the protocol offers a 0.22% bonus on redemptions of that specific token. This creates an economic incentive to correct the imbalance.

When to Use Overweight Redemption

Check IndexVault.getWeightDriftBps(token) for each basket token. If the value is >500 bps (5%), redeeming that token gives you 0.22% more than you would receive through standard basket redemption. The 0.22% bonus more than offsets the 0.20% exit fee, making the redemption slightly net-positive (before DEX spreads elsewhere).

How the Exit Fee Works

The exit fee of 0.20% is deducted from your $GNDX before the burn:

1. You send X $GNDX to RedeemEngine
2. 0.2% × X is transferred to FeeCollector (in $GNDX)
3. Proportion is calculated: share = X / totalSupply (using pre-burn total supply)
4. Remaining X - fee $GNDX is burned
5. You receive your proportional share of basket tokens (or USDC)

Pre-Burn Proportion

The proportion calculation uses the total supply before any burn. This is the correct and audited approach. Computing after burn would give an incorrect (inflated) proportion.

Using the App

1. Go to app.gndx.finance
2. Connect your wallet
3. Navigate to Redeem
4. Enter the amount of $GNDX to redeem
5. Choose your redemption path (Basket / USDC / Overweight)
6. Approve $GNDX transfer
7. Confirm the redemption transaction

Fees Summary

Fee	Rate
Exit fee	0.20% of $GNDX redeemed
Overweight bonus	+0.22% on overweight token redemptions
DEX slippage (USDC path only)	Variable by basket token

The exit fee ceiling is hardcoded at 0.50%. Governance can only reduce it, not exceed the ceiling.

Alternative: Sell on Uniswap

You can also exit by selling $GNDX directly on the $GNDX/USDC Uniswap V3 pool on Arbitrum. No exit fee applies, but you are subject to market price (which tracks NAV via arbitrage) and pool slippage.

If $GNDX is trading at a discount to NAV on the DEX, it may be cheaper to sell there than to redeem through the protocol.

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See also: Minting $GNDX · Rebalancing