# Using GTR

GTR (short for Grace Tokenized Reserve) acts as a direct claim on all protocol reserves. GTR is minted to Grace suppliers in exchange for lending their assets to Grace borrowers.

As a GTR holder, you may either:

1. Sell GTR on the secondary market such via an AMM such as Uniswap, or
2. Redeem GTR for a proportional share of protocol reserves

## Sell GTR

Before selling GTR, it is crucial to ensure that the market price that you're selling at is equal to or higher than the value of GTR backing. Otherwise, it may be more rational to redeem your GTR tokens directly.

You'll find the total backing per 1 GTR under "GTR backing" on the [**GTR page**](https://app.grace.loans/gtr).

<figure><img src="/files/ElGnw21tAbcaXneOLb1C" alt=""><figcaption></figcaption></figure>

At the time of this writing, there are no known venues for trading GTR on the secondary market. It is the responsibility of the user to discover the best available market for trading GTR in terms of price, liquidity and security.

## Redeem GTR

Before redeeming GTR, make sure that the price of the GTR token on the secondary is not higher than the backing per GTR. In some cases, the market may price GTR higher than its backing. In this case, it may be more rational to sell GTR on the secondary market.

In order to redeem GTR, visit the [GTR page](https://app.grace.loans/gtr) and input the amount of GTR tokens in your wallet that you wish to redeem.

<figure><img src="/files/iCjQJho14I1ux8aw54nT" alt=""><figcaption></figcaption></figure>

After clicking "Redeem", the GTRs will be burned from your wallet and you will receive each of the displayed assets.

The amount of received tokens is proportional to your share of the GTR total supply. For example, if you redeem 10% of total supply of GTRs in circulation, you will receive 10% of the amount of each token in the protocol reserves.


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