Vela Exchange has a vault that is entirely backed by the USDC stablecoin, and when trading on Vela you must deposit USDC into the platform. Upon depositing, you are credited USD on the exchange, which simply shows as dollars in your account. The purpose of this method is to allow for flexible stable coin deposits as the trading platform expands, and possibly add additional stables beyond USDC in the future.
You may mint or redeem your USD through the Account screen or within the trading dashboard. There is no limit to claiming or redemption, and all representation of USD is matched against deposited USDC.
In addition to the deposit function, users also have the ability to whitelist wallets or contracts that can deposit on their behalf. In the future this will be used to allow cross-chain deposit functionality utilizing platforms like Axelar.
All funds are secured by audited smart contracts that manage the claim and redemption processes. Vela Exchange does not maintain any custody of any deposited stable coins and depends on blockchain infrastructure for support of the vault.
Vela Exchange has partnered with Transak for fiat exchange functionality. By navigating to the account screen, traders from supported regions may either exchange fiat currencies for cryptocurrencies, or vice versa. Note that any KYC, limitations and restrictions, and supported purchase or transfer processes are owned fully by Transak and any other partners.