Redeeming converts winning outcome shares into USDC after a market resolves, at $1.00 per share. Until shares are redeemed the profit exists on-chain as tokens rather than as spendable collateral, so an automated strategy that never redeems slowly starves itself of working capital.
Redemption costs gas, so bots typically batch it rather than redeeming every position the moment it settles. The trade-off is between transaction cost and capital sitting idle.
Never redeeming. Winnings sit on-chain as tokens rather than as collateral, and a bot that keeps opening positions slowly runs out of usable capital while showing a profit.
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