redeem_cdp

Redeem iAssets from a CDP — builds an unsigned transaction (CBOR hex) for client-side signing. To redeem the maximum possible, pass the total minted amount.

SERVERIndigo Protocol MCP SOURCEindigoprotocol/indigo-mcp

Critical RISK CLASS

Category Financial

Parameters 50 required

Recommended Approval-gatedsee the rule below

Registry record Grade F, identity unverified Pull the record →

This record as markdown: /tools/indigoprotocol-indigo-mcp/redeem-cdp.md

WHAT IT DOES

What redeem_cdp does on Indigo Protocol MCP

AI agents use redeem_cdp to commit financial operations through Indigo Protocol MCP, usually the final step of a payment, billing, or trading workflow. A call moves real money.

Parameter	Type	Required	Description
`asset`	string	—
`amount`	string	—	iAsset amount to redeem in smallest unit (pass total minted amount to redeem max)
`address`	string	—	User Cardano bech32 address (addr1... or addr_test1...)
`cdpTxHash`	string	—	Transaction hash of the CDP UTxO
`cdpOutputIndex`	number	—	Output index of the CDP UTxO

Parameters from the server's own tool schema.

RISK

Why redeem_cdp is rated Critical

This tool constructs a blockchain transaction to redeem iAssets from a Collateralized Debt Position (CDP) on the Indigo Protocol, a DeFi lending/synthetic asset platform. Redeeming from a CDP involves moving financial assets (iAssets and underlying collateral) and has direct financial implications — it can alter collateral ratios, affect loan positions, and move crypto assets.

From the tool's definition Redeem iAssets from a CDP — builds an unsigned transaction (CBOR hex) for client-side signing. To redeem the maximum possible, pass the total minted amount.

Attacks that exploit this kind of access

RECOMMENDED RULE

The rule that runs redeem_cdp safely

PolicyLayer is an MCP gateway: it sits between your AI agents and Indigo Protocol MCP, and checks every tool call against a rule you set before the call runs. Nothing changes on the server itself. For redeem_cdp, this is the rule to start with:

redeem_cdp Approval-gated

Any call to redeem_cdp is blocked until a human approves it. The rest of the server keeps working.

View as policy code

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "redeem_cdp": {
      "deny_if": [
        {
          "conditions": [],
          "on_deny": "Requires human approval."
        }
      ]
    }
  }
}

GATE THIS TOOL → Instant setup, no code required.

The button opens the PolicyLayer dashboard: create your workspace, connect Indigo Protocol MCP, apply this rule, and every redeem_cdp call is checked against it from then on.

FAQ

Questions about redeem_cdp

What does the redeem_cdp tool do? +

Redeem iAssets from a CDP — builds an unsigned transaction (CBOR hex) for client-side signing. To redeem the maximum possible, pass the total minted amount. It is categorised as a Financial tool in the Indigo Protocol MCP MCP Server, which means it involves financial transactions. Block by default and require explicit approval.

What parameters does redeem_cdp accept? +

redeem_cdp accepts 5 parameters: asset, amount, address, cdpTxHash, cdpOutputIndex. The full parameter table on this page comes from the server's own tool schema.

How do I enforce a policy on redeem_cdp? +

Register the Indigo Protocol MCP server in PolicyLayer and add a rule for redeem_cdp: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Indigo Protocol MCP. Nothing to install.

What risk level is redeem_cdp? +

redeem_cdp is a Financial tool with critical risk. Critical-risk tools should be blocked by default and only enabled with explicit human approval.

Can I rate-limit redeem_cdp? +

Yes. Add a rate_limit block to the redeem_cdp rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.

How do I block redeem_cdp completely? +

Set action: deny in the PolicyLayer policy for redeem_cdp. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.

What MCP server provides redeem_cdp? +

redeem_cdp is provided by the Indigo Protocol MCP server (indigoprotocol/indigo-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.

KEEP EXPLORING

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