<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-1024x576.webp" alt="Fully-Redeemed Against" class="wp-image-5080"/></figure>



I have a confession.



About two weeks into <a href="https://www.thecoinzone.com/liquidloans/start-here" target="_blank" rel="noreferrer noopener">Liquid Loans</a> launch, I lost all of my PLS …



Well at least most of it.



But the good news is it actually worked out, and I ended up with MORE $PLS than before.



Here’s how it went down.



<h2 class="wp-block-heading tablecontent">How It Went</h2>



I fell asleep, and when I awoke my vault was <a href="https://www.thecoinzone.com/liquidloans/what-happens-if-my-vault-gets-redeemed-against" target="_blank" rel="noreferrer noopener">fully-redeemed</a>. 



This means that another user took most of the PLS from my vault and paid off an equivalent amount of my debt.



This happened because I found myself as the lowest collateralized vault after redemption volume had increased significantly.



Although I didn’t actually have an economic loss, because I kept my borrowed <a href="https://www.thecoinzone.com/liquidloans/usdl-crypto" target="_blank" rel="noreferrer noopener">USDL</a>, I lost most of my PLS.



But here’s where it gets interesting.



<h2 class="wp-block-heading tablecontent">Why It Worked Out</h2>



The price of PLS dipped 15% the day after I got redeemed.



So instead of holding a large amount of PLS, I was almost entirely in USDL.



I was then able to buy back at a lower price, and I ended up with much more PLS.



This goes to show that redemptions are mostly neutral, unless you don’t act fast enough and the price of PLS moves without having exposure. 



If you don’t buy your position back it could end up working out like described above, or it could be detrimental as I am about to describe.



<h2 class="wp-block-heading tablecontent">How It Could’ve Gone Badly</h2>



The price of PLS could have risen 15%, rather than falling the same amount.



In that case, I would’ve missed that awesome gain and would’ve had to contemplate buying back higher, which nobody wants to do.



Even worse, I could have opted to not buy back at all, and completely missed the next potential bull run.



Either way, it is best to understand how to not get redeemed against. 



But, if you do, stay vigilant and get your position back as soon as possible. 



<h2 class="wp-block-heading tablecontent">The Bottom Line</h2>



I got lucky. 



The price of PLS could have easily risen instead of falling, causing a completely different outcome and feeling.



But nonetheless, getting redeemed is not the end of the world.

Stablecoins Under Siege: The SEC’s New Rules Aren’t What They Seem

How to Earn Yield While HODL'ing PLS

Bitcoin’s Rise: My View From the Trenches

Here's What Happens to LL Users When Prices Rise (Actual Numbers)

<figure class="wp-block-image size-large"><img width="325px" height="183px" srcset="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/02/26045351/Fully-Redeemed-Against-1024x576.webp" alt="Fully-Redeemed Against" class="wp-image-5080"/></figure>



I have a confession.



About two weeks into <a href="https://www.thecoinzone.com/liquidloans/start-here" target="_blank" rel="noreferrer noopener">Liquid Loans</a> launch, I lost all of my PLS …



Well at least most of it.



But the good news is it actually worked out, and I ended up with MORE $PLS than before.



Here’s how it went down.



<h2 class="wp-block-heading tablecontent">How It Went</h2>



I fell asleep, and when I awoke my vault was <a href="https://www.thecoinzone.com/liquidloans/what-happens-if-my-vault-gets-redeemed-against" target="_blank" rel="noreferrer noopener">fully-redeemed</a>. 



This means that another user took most of the PLS from my vault and paid off an equivalent amount of my debt.



This happened because I found myself as the lowest collateralized vault after redemption volume had increased significantly.



Although I didn’t actually have an economic loss, because I kept my borrowed <a href="https://www.thecoinzone.com/liquidloans/usdl-crypto" target="_blank" rel="noreferrer noopener">USDL</a>, I lost most of my PLS.



But here’s where it gets interesting.



<h2 class="wp-block-heading tablecontent">Why It Worked Out</h2>



The price of PLS dipped 15% the day after I got redeemed.



So instead of holding a large amount of PLS, I was almost entirely in USDL.



I was then able to buy back at a lower price, and I ended up with much more PLS.



This goes to show that redemptions are mostly neutral, unless you don’t act fast enough and the price of PLS moves without having exposure.&nbsp;



If you don’t buy your position back it could end up working out like described above, or it could be detrimental as I am about to describe.



<h2 class="wp-block-heading tablecontent">How It Could’ve Gone Badly</h2>



The price of PLS could have risen 15%, rather than falling the same amount.



In that case, I would’ve missed that awesome gain and would’ve had to contemplate buying back higher, which nobody wants to do.



Even worse, I could have opted to not buy back at all, and completely missed the next potential bull run.



Either way, it is best to understand how to not get redeemed against. 



But, if you do, stay vigilant and get your position back as soon as possible. 



<h2 class="wp-block-heading tablecontent">The Bottom Line</h2>



I got lucky.&nbsp;



The price of PLS could have easily risen instead of falling, causing a completely different outcome and feeling.



But nonetheless, getting redeemed is not the end of the world.

Fully-Redeemed Against: A Personal Story (It Worked Out Actually)

This is a personal story of how my vault got fully-redeemed, but it actually ended up working out for the better.