USDHN & Earn

What USDHN is, how the peg works, and how Earn (Stability Pool) is funded

This page explains what USDHN is, how its peg is defended, and how Earn (Stability Pool) works from a user point of view.

Not investment advice — Stablecoins can depeg, and Earn is not risk-free. Do your own research.

At a glance

• USDHN is minted by borrowers against overcollateralized collateral.

• Peg defense relies on redemptions and market incentives.

• Earn is a USDHN pool that absorbs liquidations and receives rewards.

• APY is variable and depends on protocol conditions.

• USDHN includes OFT (omnichain) cross-chain transfer functionality.

USDHN in one picture

What is USDHN?

USDHN is a Kaia-native, overcollateralized, USD-pegged asset minted from Hann Finance Troves.

• Mint: you deposit collateral and mint USDHN.

• Use: you can hold USDHN, swap it, provide liquidity, or deposit into Earn.

• Repay: you repay USDHN to reduce or close your debt.

How does the peg work (conceptually)?

USDHN uses a self-correcting design:

• When USDHN trades below $1, redeeming USDHN for collateral becomes attractive, which can reduce supply.

• When USDHN trades above $1, minting USDHN can become more attractive, which can increase supply.

For the full mechanism and borrower impact, see Redemptions & Risk.

[TBD] Exact fee and parameter formulas — Peg mechanics include fees and market parameters defined on-chain. This page only explains the conceptual behavior.

What is Earn (Stability Pool)?

Earn is a protocol pool where users deposit USDHN.

In many CDP designs, the Stability Pool is the pool that absorbs liquidations:

• during liquidations, deposited USDHN can be used to offset bad debt

• in return, depositors receive liquidation proceeds and/or protocol-funded rewards

How to use Earn

1

Step 1: Get USDHN

You can obtain USDHN by minting it (opening a Trove) or by swapping in markets.

• Minting flow: Borrowing & Liquidation

• Swapping flow: StableSwap DEX

2

Step 2: Deposit into Earn

Choose the Earn pool for the collateral branch you want exposure to, then deposit USDHN.

Earn pools can differ by collateral branch. Your liquidation proceeds may be paid in different collateral assets.

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Step 3: Monitor and manage

Track:

• your USDHN deposit size

• rewards / liquidation proceeds

• system conditions that can affect returns and risk

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Step 4: Withdraw when needed

You can withdraw your remaining USDHN (and claim any available rewards) subject to protocol rules.

Main risks to understand

Peg risk

USDHN can trade above or below $1 in the market.

Even with redemption mechanics, peg deviations can persist under stress.

Earn risk

Smart contract & oracle risk

Deep dives (optional)

• Liquidations and Earn mechanics: Liquidations & Earn Deep Dive

• Redemption mechanics (with CR examples): Redemptions Deep Dive

Next reads

• Borrower-side peg impact: Redemptions & Risk

• Swapping and LP: StableSwap DEX

• Full risk list: Risk Disclosure