# Liquidity Management One of the benefits of the previous iterations of UXD as a delta-neutral stablecoin was the ability to redeem 1 UXD for 1 USD of assets at any time. As UXD is no longer simply backed by a delta-neutral position on a decentralized derivatives exchange, a more complex liquidity management strategy is required to ensure a stable peg. This strategy is still under development but philosophically, UXD Protocol is looking to develop a strategy that: (i) Is able to handle "normal" withdrawals/redemptions with very high certainty (ii) Is able to handle "abnormal" withdrawals/redemptions with reasonably high certainty (iii) Is able to handle "extreme" withdrawals/redemptions with some certainty Functionally, this involves UXD Protocol mathematically modeling various redemption behaviour profiles, and consequently structuring its ALM strategies in accordance with this model. This is because different ALM strategies will have different liquidity profiles. For example, something like Maple Finance may have a 90 day redemption period, whereas a Delta-Neutral Position may have an atomic (within 1 block) redemption period. Therefore, a relative weighting of these strategies to meet the above redemption goals is necessary and under development. ## --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.uxd.fi/uxdprotocol/overview/liquidity-management.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.