📙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.