QEV Redemption
Queue Extractable Value — The Liquidity Layer
QEV is a DeFi primitive designed to address liquidity challenges associated with long-dated redemptions and low-liquidity collateral within TIX Credit. By introducing a market-driven mechanism for pricing and sequencing redemptions, QEV enables depositors to access liquidity more efficiently while mitigating the risks of illiquid assets.
The Liquidity Challenge
Live entertainment venues are inherently less liquid than traditional financial assets:
Stablecoins (USDC)
Instant
T-Bills
1-3 days
Public Equities
T+2
Venue Infrastructure
Months to years
This creates a fundamental tension: depositors want liquid access to their capital, but the underlying collateral (venues) cannot be instantly liquidated.
How QEV Solves This
QEV calibrates low-liquidity repayment schedules into a 1:1 liquid asset that enables re-pegging via market-based mechanisms that monetize redemption traffic.
Core Benefits
Prevents mass liquidity shocks — Structured amortization schedules prevent bank runs
Reduces volatility — Queue sequencing smooths redemption pricing
Minimizes systemic risk — Prevents capital flight contagion
Creates market opportunities — Priority access can be purchased
Structured Liquidity Scheduling
QEV relies on a structured liquidity scheduling system for yield-bearing assets with predefined repayment cycles, operating in a synchronous manner similar to how blockchains process transactions at each block.
How It Works
Liquidity Sources
Liquidity released each epoch comes from two sources:
Streaming Yield Distributions
T-bill yields
Zero-coupon loan rollovers
Protocol fee distributions
Principal Repayments
Monthly borrower payments
Loan amortization
Early repayments
Auction Mechanics
Epoch-Based Auctions
QEV is synchronized to every 30 days to aggregate all distributions:
Queue Position Bidding
Each epoch presents a limited supply of liquidity for redemption. As demand for exits fluctuates, competition for queue positioning emerges.
Instead of inefficient first-come-first-served, QEV structures priority access based on market-driven pricing:
Queue Positions
Become tradeable market instruments
Priority Bidding
Users can bid for faster redemptions
Fair Distribution
Non-bidders advance proportionally
Passive Rewards
Stakers earn from auction fees
Zero-Knowledge Bids
All bids are conducted privately via zero-knowledge proofs to avoid MEV (Miner Extractable Value) scenarios:
Prevents last-block sniping
Ensures fair auction outcomes
Protects bidder strategies
User Experience
For Active Redeemers
Navigate to the Unstake page
Enter redemption request
Choose priority level:
Standard — FIFO queue, no fee
Priority — Bid for faster access
Wait for next auction epoch
Withdraw USDtix + accrued yield
For Passive Stakers
Continue holding sUSDtix
Earn yield from:
Underlying loan interest
Auction fee redistribution
Smoothed yield distributions
Redeem whenever ready
Yield continues accruing until the scheduled unstaking date, even while in the redemption queue.
Financial Primitives Unlocked
QEV transforms queue sequencing into a liquidity market, unlocking new financial primitives:
1. Liquidity as a Tradable Asset
Queue positions can be priced, exchanged, and eventually tokenized—creating a secondary market for redemption priority.
2. Dynamic Pricing
Demand-sensitive capital allocation ensures efficient price discovery for redemption slots.
3. Arbitrage Opportunities
Strategic bidders can optimize exit strategies, creating new yield mechanics for sophisticated participants.
4. Smoothed Distributions
Passive holders benefit from auction fees being redistributed, effectively earning yield on others' urgency.
QEV vs Traditional Redemptions
Queue Type
FIFO only
Market-driven + FIFO
Exit Speed
Fixed
Variable (bid for priority)
Pricing
None
Demand-based
Passive Income
None
Auction fee share
Transparency
Often opaque
On-chain, verifiable
MEV Protection
None
ZK-proof bids
Redemption Mechanics
Standard Redemption Flow
Priority Redemption Flow
Default Behavior
If no users bid for priority:
Queue enters FIFO distribution
Proceeds are distributed proportionally
If no one redeems, proceeds are rolled over to:
New venue loans
T-bill holdings ("basic redemption / reinvests")
Timelock
Redemptions are managed with a FIFO queue, subject to a timelock (e.g., 7-30 days). The redemption queue will implement built-in auctions to bid on queue position.
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