Minting is the process of creating new tAssets by supplying part of KUSD and TWX according to the Collateral Ratio. The value of assets needed to be minted will be worth the Oracle price at the time of minting. The collateralized KUSD will be used to provide value, while TWX will be burned from the system.
Redemption is the process of retrieving KUSD and TWX by supplying tAssets to burn. The ratio of KUSD and TWX are variable depending on the Collateral Ratio, but the total worth will be of that Oracle price
Therefore, it is possible to say that you require the current real-world price of the asset to mint tAssets, and will get the current real-world price from redeeming tAssets. In the process, TWX will be newly minted from the system.
Minting and redemption are some of the mechanisms that help keep the price of tAssets to the peg by opening opportunities for arbitrageurs to arbitrage and gain profit from the difference of the market price from the peg.
When the tAsset price is more than the Oracle price (in premium), anyone can make a profit by minting tAsset at Oracle price and immediately selling the tAsset to make a profit from the difference.
When the tAsset price is less than the Oracle price (at a discount) anyone can make a profit by buying tAsset at that moment and immediately redeem the tAsset for the Oracle price to make a profit from the difference.
However, this still presents the chance that the tAssets price is far off peg in a small period of time, which creates a negative feedback loop for people to keep selling tAssets.
At this point, the platform will dynamically adjust the Collateral Ratio to use more stablecoins in order to gain trust.