Claiming collateral

Tokenized bonds can be purchased with collateral supported on the Verified Network such as stETH (staked ether). Such collateral is staked by borrowers using the issuing bond contract on liquidity sources such as Compound to borrow stablecoins such as USDC.

Lenders get bond tokens when they purchase bonds and such bond tokens can be used to redeem bonds. Redemption of a bond returns the collateral to the lender or bond purchaser and extinguishes (burns) the bond tokens used to claim collateral by redeeming bonds.