Plain-English definition
Redemption is the exit door. It is the process for swapping the token back into dollars, gold, fund shares, or whatever the product says sits underneath.
A token trading near its target price is not the same as legal redemption access. The key questions are who can redeem, minimum size, timing, KYC, jurisdiction, fees, and what happens under stress.
Why it matters
Redemption matters because crypto markets can look precise while still being shallow, crowded, or poorly sourced. A useful read is not just the number. It is the number, the size behind it, the context around it, and the part it cannot explain.
Simple example
A simple Redemption example is a reader comparing two venues with the same headline price but different depth. The deeper venue can absorb more capital before the trade, peg, or yield reading starts to move against the user.
How Bathymark uses this term
Bathymark uses Redemption to translate open market data into live liquidity readings. When the term touches a live page, the reading links back to the relevant chain, protocol, stablecoin, DEX, perps, or Signal so the source remains checkable.
Common mistake
The common mistake is treating Redemption as a complete signal by itself. Bathymark treats it as one instrument: useful when read beside liquidity, source, size, and what the number cannot prove.