# General

This page answers the most common “what is this?” questions about Hann Finance in plain language.

{% hint style="info" %}
**Not investment advice** — This FAQ is educational. It does not recommend any strategy or collateral ratio.
{% endhint %}

## 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](https://hann-finance.gitbook.io/hann-finance/protocol/borrowing-and-liquidation).

## Which collateral types are supported?

Supported collateral is defined per **collateral branch**. New collateral branches can be added over time.

{% hint style="warning" %}
**\[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.
{% endhint %}

## 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](https://hann-finance.gitbook.io/hann-finance/protocol/usdhn-and-earn) and [Redemptions & Risk](https://hann-finance.gitbook.io/hann-finance/protocol/redemptions-and-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?

* [Website](https://hann.finance)
* [𝕏](https://x.com/HannFinance)
* [Discord](https://discord.gg/tzUgd7c68P)

{% hint style="info" %}
**Roadmap — Bridge UX** — The [Website](https://hann.finance) is planned to add a streamlined KAIA ↔ other-chain bridge experience (including OFT bridging for supported tokens).
{% endhint %}

{% hint style="warning" %}
Always verify you are using official channels to avoid phishing.
{% endhint %}