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The final stage of the Abyss transaction lifecycle is redemption. Redemption is the process by which $V, the protocol’s normalized privacy asset, is converted back into externally usable value. This step is intentionally separated from the withdrawal flow. Privacy is achieved before redemption occurs. Once funds have exited the anonymity pool, users regain full flexibility over asset choice and usage without retroactively compromising unlinkability. This separation is critical. If redemption were tightly coupled to withdrawal, asset choice itself could become a correlation vector. Abyss avoids this by ensuring that withdrawals always produce the same fungible output ($V), regardless of the original deposited asset or intended destination.

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V.3.1 Post-Withdrawal Asset State

After a successful withdrawal, the user or recipient controls $V at a standard EVM address: 
(address, balance_V)
At this point:
  • The privacy guarantee has already been realized
  • The protocol no longer reasons about the funds
  • Subsequent actions are outside the anonymity pool
Importantly, the withdrawal address need not belong to the original depositor. This allows the withdrawal to function as a direct payment, settlement, or distribution event.

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V.3.2 Redemption Semantics

Redemption converts $V into another asset A via protocol-supported liquidity paths: 
redeem(V_amount, asset_A) → amount_A
Redemption may occur:
  • Immediately after withdrawal
  • After arbitrary delay
  • Via third-party applications or merchants
The redemption transaction is publicly visible, but it is not linkable to the original deposit. Observers can see that a given address redeemed $V, but cannot determine where that $V originated.

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V.3.3 Re-Entry into DeFi

Once redeemed, assets behave like any other on-chain asset. They can be:
  • Deposited into lending protocols
  • Traded on exchanges
  • Used as collateral
  • Sent to other addresses
Abyss does not attempt to enforce downstream privacy. Its role is to ensure that when assets re-enter DeFi, they do so without historical baggage. This property is especially important for:
  • Exchanges settling trades privately
  • Prediction markets paying out winners
  • DAOs distributing grants
  • Employers paying contractors
Recipients receive clean, fungible value without inheriting the sender’s transaction history.

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V.3.4 Merchant and Payment Flows

In merchant contexts, redemption can be abstracted entirely. A merchant may:
  • Receive $V directly
  • Redeem into a preferred asset
  • Settle funds according to internal policies
At no point does the merchant gain visibility into the payer’s prior activity. This mirrors cash-like behavior while remaining fully on-chain and auditable.

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V.3.5 Privacy Boundary Clarification

It is critical to distinguish:
  • Privacy boundary: Ends at withdrawal
  • Economic freedom: Begins after withdrawal
Abyss guarantees unlinkability up to the point of withdrawal. After that, standard on-chain transparency applies. This explicit boundary avoids overpromising and ensures composability.

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V.3.6 Design Implications

By separating withdrawal and redemption:
  • Privacy guarantees remain clean and analyzable
  • Asset choice becomes orthogonal to anonymity
  • Integrations remain simple and predictable
This design allows Abyss to serve as a neutral privacy layer rather than a closed ecosystem.