USDF redemption should not be across bank coins but only bank member's own coin.
Problem Definition
As currently designed, a redemption first swaps USDF for requesting member bank's coin and then randomly across other member bank coins. Conceptually, this made sense as an IOU that exists from another bank's coin to the redeeming bank coin. But it adds complexity in needing to then handle individual bank coins and redeem them accordingly against specific bank members. It also requires additional grant authz support for other bank coins which adds complexity to the bank member joining process.
Banks can query individual bank coins to see who has fiat available to redeem against. A bank can then send USDF directly from self to another member bank for redemption, which would trigger an external bank fed wire from recipient bank back to the sending bank (TBD another issue).
Proposal
Update Smart Contract to only allow redemption of bank coin owned by requesting bank member. Error if insufficient bank coin to satisfy redemption request.
Update service to decouple redemption and burn from the fiat redemption process. Trigger a fiat redemption as soon as USDF is received.
Update service to initialize a redemption and burn manually via endpoint assuming sufficient bank where sufficient bank coin exists. (manual minting bank coin to cover functionality exists in another issue).
Summary
USDF redemption should not be across bank coins but only bank member's own coin.
Problem Definition
As currently designed, a redemption first swaps USDF for requesting member bank's coin and then randomly across other member bank coins. Conceptually, this made sense as an IOU that exists from another bank's coin to the redeeming bank coin. But it adds complexity in needing to then handle individual bank coins and redeem them accordingly against specific bank members. It also requires additional grant authz support for other bank coins which adds complexity to the bank member joining process.
Banks can query individual bank coins to see who has fiat available to redeem against. A bank can then send USDF directly from self to another member bank for redemption, which would trigger an external bank fed wire from recipient bank back to the sending bank (TBD another issue).
Proposal
For Admin Use