Comment on page
Removing free optionality from the
Redemption Mechanic potentially imposes large capital requirements. The introduction of the LUQ Token reduces those capital requirements, requiring the redemption quantum to equal the highest valued floor NFT in the MarketVault rather than the highest valued NFT in the MarketVault. More arcanely, $LUQ substantially reduces the gas costs associated with the redemption mechanism by obviating the need to cycle through an array containing each atypical NFT.
Atypical NFTs can be redeemed at any time by burning the requisite amount of LUQ Tokens. $LUQ price of redeeming an atypical NFT is equal to the amount of
NFT Index Token issued in the loan for which it was used as collateral.