General
Frequently asked questions about the Hann Finance protocol
This page answers the most common “what is this?” questions about Hann Finance in plain language.
Not investment advice — This FAQ is educational. It does not recommend any strategy or collateral ratio.
At a glance
Hann Finance is a CDP protocol that mints USDHN against collateral.
Users manage positions via Trove(s) (represented as NFTs).
USDHN peg tools include redemptions and market-driven incentives.
Some collateral and strategy flows involve Kaia LSTs.
USDHN and HNKAIA include OFT (omnichain) cross-chain transfer functionality.
What is Hann Finance?
Hann Finance is a Collateralized Debt Position (CDP) protocol designed for the Kaia ecosystem. Users deposit collateral and mint USDHN, a fully on-chain overcollateralized USD-pegged asset.
How does a CDP work?
You open a Trove by depositing collateral and minting USDHN against it.
If collateral value drops or your debt increases, your collateral ratio (CR) falls.
If CR becomes too low, the Trove can be liquidated.
For the full flow, see Borrowing & Liquidation.
Which collateral types are supported?
Supported collateral is defined per collateral branch. New collateral branches can be added over time.
[TBD] Collateral whitelist — This GitBook avoids hardcoding a list that could go stale. Use the official UI or on-chain registry for the latest supported collateral.
What is USDHN?
USDHN is a Kaia-native stable asset targeting a value near $1.
USDHN is minted by borrowers (against collateral).
USDHN can be deposited into Earn, swapped in markets, or redeemed for collateral.
See USDHN & Earn and Redemptions & Risk.
How does the USDHN peg work (in one sentence)?
If USDHN trades below $1, redemptions can reduce supply by swapping USDHN back into collateral; if USDHN trades above $1, borrowing can become more attractive, increasing supply.
Where do I get updates?
Roadmap — Bridge UX — The Website is planned to add a streamlined KAIA ↔ other-chain bridge experience (including OFT bridging for supported tokens).
Always verify you are using official channels to avoid phishing.
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