What does collateral mean?

In short, collateral refers to any assets a borrower must provide as security for their USDH loan. Collateral ensures that a borrower will repay their loan.

Collateral Explained:

Collateral ratio (CR) is the dollar value of your deposited assets compared to the value of USDH you have borrowed. Another way to measure borrowing is loan-to-value (LTV).
For example, a 125% CR is equal to a 80% LTV. These ratios can fluctuate as the value of your assets changes in the market, so we encourage you to stay up to date with your position.
You can also increase your collateral ratio (lower your LTV), either by depositing more assets, or repaying parts of your USDH debt.
Collateral ratio mirrors loan-to-value. If your CR increases, your LTV decreases, which means you are safer from liquidation. Hubble prefers to monitor LTV, mainly because it gives you a better idea of how much you have borrowed vs. how much you are allowed to borrow.

What tokens does Hubble accept as collateral?

Collateral can be provided in the DeFi Treasury with SOL, ETH, mSOL, stSOL, and daoSOL. Solend cTokens and Kamino kTokens can be deposited into separate vaults.
The protocol will be onboarding various new assets going forward, provided they are deemed safe to onboard.