When a Senior token (e.g., srUSDe, srPRIME, srUSDat) is redeemed, the user receives the underlying asset and/or associated stablecoins based on the Senior token's exchange rate with the reference asset, minus any applicable redemption fees.
At the current stage of protocol implementation:
Senior tokens can be redeemed for the underlying asset and/or associated stablecoins through the Strata UI, depending on the market.
Redemption fees are variable, depending on the specific market and current coverage level. The applicable fee is displayed on the UI prior to confirmation.
Redemption is processed instantly for at least one of the available assets (in particular, the underlying held in the market's strategy); other assets, if offered, may be subject to a withdrawal queue consistent with the underlying protocol's own redemption period. The asset(s) subject to this queue vary by market and are displayed on the UI prior to confirmation. Once the withdrawal queue ends, the asset can be claimed in the Portfolio section.
Senior tokens can also be traded for other assets on DEXs.