# 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.                                                                                                                                                                                                                      |


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