# Stablecoin Collateral

Natura Token can be used as collateral to issue a synthetic stablecoin on a smart contract-based platform.

Users deposit Natura Tokens into a dedicated vault and generate a proportionate amount of stablecoin, maintaining a minimum collateralization ratio to prevent liquidations. To recover the collateral, they must repay the stablecoin and accrued interest, maintaining system stability. If Natura Token's value drops significantly below the stablecoin debt level, the collateral can be liquidated. The platform may adjust interest rates or intervene to keep the stablecoin stable and pegged to a fiat currency like the dollar.

This allows users to leverage their tokens' value, providing stable liquidity access through decentralized finance.

For holders, using Natura Token as collateral offers significant benefits. It provides liquidity without needing to sell assets, which is valuable during market volatility. This capability enhances financial flexibility, allowing holders to explore other investments or manage expenses while retaining their assets. This multifunctionality increases Natura Tokens' practical value as financial management tool.

This feature is currently under development and not yet operational. For details on its launch and other related information, consult the roadmap.
