How to Bake and Burn BREAD

Baking and burning are the two ways to move between xDAI and BREAD in the Solidarity Fund, always at a 1:1 rate.

You’ll need a wallet connected to the Solidarity Fund app. If you haven’t connected yet, see Connecting a Wallet.

Baking BREAD

Baking deposits xDAI into the Solidarity Fund and mints an equal amount of BREAD in return. The rate is always 1:1. Your deposit generates yield for the network, but the deposit itself stays yours. (You’ll need some xDAI in your connected wallet.)

Steps

Open the Bake tab.
Enter the amount of xDAI you want to bake. The BREAD field updates automatically to match.
Click Bake. Your wallet will open a transaction window.
Review the transaction before signing:
- The xDAI amount going in matches what you entered
- The BREAD amount coming out matches, 1 for 1
- The action is labelled “mint”
Sign the transaction.

The Solidarity Fund is a smaller application, so your wallet may flag the interaction as unfamiliar or show an “Unknown Signature Type” warning. This is normal. If anything looks genuinely wrong, ask in the Bread Cooperative Discord before signing.

Burning BREAD

Burning redeems your BREAD back to xDAI at a 1:1 ratio. There is no penalty, no waiting period, and no minimum amount. (You’ll need BREAD in your connected wallet.)

Steps

Open the Burn tab.
Enter the amount of BREAD you want to burn.
Click Burn. You’ll be asked if you’d rather wrap your BREAD into Wrapped xDAI instead. This keeps your funds circulating in the network rather than withdrawing them. If you want to withdraw, continue with Burn.
Review the transaction before signing:
- The BREAD amount going in matches what you entered
- The xDAI amount coming out matches, 1 for 1
- The action is labelled “burn”
Sign the transaction. It should confirm within a few seconds.

Network fees

Transactions on Gnosis Chain may carry a small network fee, shown before you sign. The default fee is fine to leave as-is.

Questions? Ask in the Bread Cooperative Discord and tag a moderator.