Glossary

Term	Description
USDN	A stablecoin soft-pegged to the US dollar. Its value should always be close to US $1.00. Each $1 equivalent of USDN is backed by at least $1.10 equivalent of collateral.
NPT	A protocol token. It rewards market makers for providing liquidity to the system by capturing a proportional share of the protocol earnings when staked.
Collateral	Tokens that you deposit as a guarantee for the loan that Hedge gives you. Currently, ETH, tETH, SOL, ezSOL, jitoSOL, TIA or stTIA are supported forms of collateral.
Collateral Ratio	The market value of your collateral divided by your debt (loan amount in USDN).
Liquidation	When an undercollateralized vault is liquidated, the debt and collateral are zeroed out and users who have deposited USDN 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 USDN to ETH, tETH, SOL, ezSOL, jitoSOL, TIA or stTIA and from USDN to ETH, tETH, SOL, ezSOL, jitoSOL, TIA or stTIA. This is not native to Neptune but may be done on other platforms.
Redemption	Any user may redeem their USDN for the equivalent value in collateral (ETH, tETH, SOL, ezSOL, jitoSOL, TIA or stTIA). Collateral 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 USDN and be rewarded in the associated collateral (ETH, tETH, SOL, ezSOL, jitoSOL, TIA or stTIA ) and NPT tokens.
Staking pool	Users can stake their NPT tokens and earn a proportional share of the protocol's earnings.