How to use Hedge
Protocol Overview
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Glossary
Term
Description
USH
A stablecoin soft-pegged to the US dollar. Its value should always be close to US $1.00. Each $1 equivalent of USH is backed by at least $1.10 equivalent of collateral.
HDG
A revenue share and governance token. It rewards market makers for providing liquidity to the system by capturing a proportional share of the protocol revenues when staked.
Collateral
Tokens that you deposit as a guarantee for the loan that Hedge gives you. Currently, SOL is the first supported form of collateral.
Collateral Ratio
The market value of your collateral divided by your debt (loan amount in USH).
Liquidation
When an undercollateralized vault is liquidated, the debt and collateral are zeroed out and users who have deposited USH in a stability pool are returned discounted collateral as a reward.
Liquidity Pool
Users can put tokens in to allow other users to swap their tokens more easily; for example from USH to SOL and from HDG to SOL. This is not native to Hedge but may be done on other platforms.
Redemption
Any user may redeem their USH for the equivalent value in SOL. This SOL will be taken from the user’s vault with the lowest collateral ratio; after a fee is assessed, the vault owner's debt is repaid at a premium. This reduces the vault’s debt and collateral and increases the vault’s collateral ratio.
Stability Pool
Used in liquidations; users can deposit USH and be rewarded in SOL and HDG tokens.
Staking pool
Users can stake their HDG tokens and earn a proportional share of the protocol's revenue.
Last modified 25d ago
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