Redemption is an action of depositing BEUR into Troves of other users and withdrawing the equivalent value of collateral, minus the redemption fee. When BEUR is redeemed for collateral assets, the system cancels the BEUR debt from Troves, and the collateral asset is drawn from their collateral.
The redemption request is executed by redeeming BEUR from troves in descending order of their collateralization ratio starting with the lowest one. Most redemption transactions will include a partial redemption since the amount redeemed is unlikely to perfectly match the total debt of a series of Troves.
A Trove is defined as “fully redeemed from” when the redemption has caused the BEUR balance to be equal to the Liquidation Reserve. Then, the Liquidation Reserve is burned from the gas address, and the debt is zeroed.