> For the complete documentation index, see [llms.txt](https://docs.goevolve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goevolve.xyz/defi-integration/liquidity.md).

# Liquidity

Evolve supports DeFi integrations through **two liquidity mechanisms**:

1. a **primary liquidity path** implemented through **native mint and redemption**, and
2. 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:

1. **Canonical exit route**\
   Primary mint/redemption provides a standardized “base case” path to convert eUSD back into the redeem asset per disclosed rules.
2. **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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