# Minting and Redeeming

### Minting

In order to mint 1 $ASTX, the system requires 1 ASTR and (1 - CR) will be converted to $ALNR/ASTR LP.

{% hint style="info" %}
For example - CR = 90% and you want to mint 100 $ASTX\
\
90 ASTR will be deposited into ASTR pool reserve and \
10 ASTR will be converted to $ALNR/ASTR LP ([protocol-owned-liquidity](https://alnair-finance.gitbook.io/alnair-finance/mechanisms/protocol-owned-liquidity "mention")=POL)
{% endhint %}

### Redeeming

When 1 $ASTX is redeemed, the system returns CR worth of ASTR and (1 - CR) worth of $ALNR.

{% hint style="info" %}
For example - CR = 95%\
If you want to redeem 100 $ASTX -> 95% will be returned as GLMR and 5% as $ALNR
{% endhint %}

### 2-step Minting / Redeeming mechanism

After both, Minting or Redeeming, you will have to additionally collect your minted or redeemed tokens. This mechanism was implemented to [prevent flashloan](https://alnair-finance.gitbook.io/alnair-finance/mechanisms/flash-loan-protection). 

### Fees

* 0.3% fee for minting
* 0.5% fee for redeeming

> Fees will be transferring to the Staking and Locking Distribution(80%) and treasury(20%).