NFT

When a user first deposits collateral into a vault, the system mints them a NFT. One NFT is minted per collateral type, which creates a clear separation between loans. Wrapping the position in a NFT has multiple benefits: The NFT can be moved to a different address without closing the loan and important statistics of the loan (like the Collateral Value, Minted $USDH, Collateral Ratio and Interest Rate), can be displayed via the profile picture. The two main balances that are stored in the NFT are: The Vault balance and the $USDH debt balance. Users can manage these balances by Depositing or Withdrawing collateral, or Minting and Burning $USDH debt. The Collateral Ratio changes as these balances are adjusted.