The post states:

>"Deus Finance uses DEUS and DEI tokens for their DeFi protocol, where minting 1 DEI requires $1 of collateral. When redeeming, for instance, one DEI, users would get 80% of the value in USDC and 20% in DEUS if USDC was used as collateral for the creation of DEI in the first place."

I've read this same passage 5 times now and I still don't understand it as this sounds very circular. Shouldn't you be able to redeem a stable coin for $1 in whatever currency it is pegged to? Could someone explain how this works?