Liquidity
Evolve supports DeFi integrations through two liquidity mechanisms:
a primary liquidity path implemented through native mint and redemption, and
a secondary liquidity path implemented through venue-based trading (being added in partnership with a trading venue).
This mirrors how liquidity works in traditional markets—mutual fund primary liquidity and ETF secondary liquidity—while remaining compatible with product-specific redemption mechanics and the bankruptcy-remote segregated vault structure.
Primary liquidity: Native mint and redemption
eUSD is issued and redeemed through Evolve’s native facility.
Mint (issuance)
eUSD is minted when a user deposits the accepted mint asset(s) into the eUSD vault.
The amount of eUSD minted is determined by the product’s issuance logic and the applicable NAV reference at the time of processing (as defined in the product terms).
Redeem
eUSD is redeemed when a user submits a redemption request and eUSD is burned to receive the designated redeem asset (as defined in the product terms).
Redemption proceeds are determined by the product’s redemption logic and the applicable NAV reference at the time of processing.
Primary mint/redemption is the canonical liquidity path for eUSD. It anchors eUSD valuation to the product’s NAV methodology and provides a standardized entry/exit route that DeFi integrators can rely on.
Secondary liquidity: Trading venue liquidity (coming soon)
Evolve is adding secondary liquidity for eUSD through partnerships with a trading venue.
Secondary liquidity is implemented as secondary market trading of eUSD, enabling holders to buy or sell eUSD on a venue without using mint/redemption for that transaction.
This is especially relevant when:
redemptions operate with cooldowns, processing windows, or queues, or
users prefer immediate execution over waiting for the redemption cycle.
Secondary trading can provide an additional liquidity route for users who want faster exits, while the primary route remains the valuation anchor.
How DeFi builders evaluate liquidity
For DeFi integrations (especially lending markets), liquidity is typically evaluated based on two properties:
Canonical exit route Primary mint/redemption provides a standardized “base case” path to convert eUSD back into the redeem asset per disclosed rules.
Secondary trading availability Venue-based liquidity provides an optional faster exit route when immediate liquidity is required or preferred.
Evolve’s model supports both properties without requiring continuous AMM liquidity to be maintained onchain at all times.
Summary
Primary liquidity (mint/redeem) is the valuation anchor and canonical exit route.
Secondary liquidity (venue trading) provides optional faster execution and alternative exits (coming soon).
Both are compatible with product-specific redemption mechanics and the underlying bankruptcy-remote segregated vault structure.
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