KESTREL DOCS

Understand tokenized DeFi strategies.

Learn how Kestrel packages on-chain strategies into tokens, what happens when you buy or sell, and which risks matter before using the protocol.

Redemptions

Selling a Kestrel token burns the token and returns the underlying asset according to the current on-chain redemption price, subject to fees and protocol liquidity.

Immediate redemptions

If the protocol has enough readily available collateral for the token, a sale can settle in the same flow. In that case, the underlying asset is transferred directly to your wallet after the transaction confirms.

Asynchronous redemptions

If enough collateral is not immediately available, your sale may become asynchronous. This can happen when collateral is deployed into strategy positions and needs to be freed before it can be returned.

In an asynchronous redemption:

  1. Your Kestrel tokens are burned or escrowed by the protocol.
  2. A redemption request is recorded on-chain.
  3. The protocol or operator services unwind positions.
  4. Requests are processed according to protocol rules.
  5. The underlying asset is sent to your wallet once the request is processed.

Why asynchronous settlement exists

Kestrel strategies deploy assets to earn yield, so not every deposited asset sits idle and ready to return the instant you sell. Two things can make a sale settle asynchronously:

  • Freeing liquidity. When collateral is deployed into strategy positions, the protocol has to unwind those positions before it can return your underlying asset.
  • Transaction size limits. Solana caps how much a single transaction can do — its byte size and the number of accounts and instructions it can touch. Unwinding a position and paying out can take more steps and reference more accounts than fit in one transaction, especially for larger redemptions, so the work is split across several transactions instead of one.

Async settlement lets the protocol handle both cases while preserving the ordering and accounting of redemption requests.

What to check before selling

  • The amount you are selling.
  • The estimated underlying asset you will receive.
  • Whether the interface shows an asynchronous settlement warning.
  • Network and protocol fees.
  • The transaction details shown by your wallet.