What is a collateral token?

There are numerous collateral tokens nowadays. The collateral token a borrower needs to deposit is determined by the loan platform. For example, one of the more recognizable collateral tokens at the moment is COLL, or Collateral Pay.

What is collateral in the financial world?

Collateral in the financial world is a valuable asset that a borrower pledges as security for a loan. For example, when a homebuyer obtains a mortgage, the home serves as the collateral for the loan. For a car loan, the vehicle is the collateral.

What are examples of fully-collateralized stablecoins?

Notable examples of fully-collateralized stablecoins include USDT, USDC and DAI. The collateral is used to provide holders of the token with an opportunity to redeem the tokens for U.S. dollars or other assets that can then be used in the real world.

What is the collateral protocol?

The COLLATERAL Protocol allows users to STORE, STAKE, LOAN, SAVE & PAY. ANYTIME, ANYPLACE, ANYWHERE. COLLATERAL allows users to unlock and utilise their crypto assets, without having to sell them. Crypto assets will be used as collateral against payments to merchants by users.