> For the complete documentation index, see [llms.txt](https://jpydf.gitbook.io/jpy-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jpydf.gitbook.io/jpy-defi/collateral-and-pricing/collateral-assets.md).

# Collateral Assets

JPY DeFi runs an independent market (a **branch**) for each collateral type. wstETH and USDC are currently available for borrowing.

## Branches

Each branch has its own [Stability Pool](/jpy-defi/stability-pool/earn.md), collateral price feed, and liquidation parameters. Borrowers open a Trove in the branch for the collateral they want to use.

Liquidation, collateral pricing, and parameters are separated between branches. However, the JPY/USD price used for yen conversion is shared by all branches. Also, every branch issues the same JPYdf, so severe collateral impairment can still affect JPYdf's value.

## Collateral currently available

Each asset is converted into a [dToken](/jpy-defi/collateral-and-pricing/dtoken.md) before becoming collateral. For the specification of each collateral asset itself, see its issuer's official site.

| Collateral (underlying asset)       | dToken  | Status              |
| ----------------------------------- | ------- | ------------------- |
| [wstETH](https://lido.fi/)          | dwstETH | Borrowing available |
| [USDC](https://www.circle.com/usdc) | dUSDC   | Borrowing available |

Six more branches are reserved for future collateral. They have no underlying asset assigned and their risk parameters are not finalized, so the contracts reject opening Troves and Stability Pool deposits (their mint cap, the dToken issuance cap, is also zero). Their target asset and parameters are finalized once by the Timelock at activation and announced.

## Safety parameters

Each branch has safety parameters set according to the characteristics of its collateral. More volatile collateral gets more conservative values.

* **MCR (Minimum Collateral Ratio)**: An individual Trove whose collateral ratio falls below it becomes subject to [liquidation](/jpy-defi/borrowing-and-trove-management/liquidations.md).
* **CCR (Critical Collateral Ratio)**: If the branch-wide collateral ratio falls below it, operations that lower the collateral ratio are restricted ([Borrowing](/jpy-defi/borrowing-and-trove-management/borrowing.md)).
* **SCR (Shutdown Collateral Ratio)**: If the branch-wide collateral ratio falls below it, anyone can permanently shut down the branch. Shutdown is irreversible; afterwards, debt is resolved through liquidation and urgent redemption.
* **BCR (Batch Collateral Ratio buffer)**: The margin above the MCR required when joining a Batch Manager and when adjusting collateral or debt while in the batch. The liquidation threshold remains the MCR.

### Values by branch

| dToken  | Underlying asset |     MCR |     CCR |     SCR |    BCR | Liquidation penalty (Stability Pool) | Liquidation penalty (redistribution) |                        mint cap | withdrawal waiting period | buffer target |
| ------- | ---------------- | ------: | ------: | ------: | -----: | -----------------------------------: | -----------------------------------: | ------------------------------: | ------------------------: | ------------: |
| dwstETH | wstETH           | 123.18% | 141.67% | 110.00% | 10.00% |                                5.00% |                               20.00% |    76.132687320879358210 wstETH |                    3 days |         3.33% |
| dUSDC   | USDC             | 111.58% | 124.50% | 105.00% | 10.00% |                                5.00% |                               10.00% | 628,867.860730445668030054 USDC |                    3 days |           20% |

The dUSDC buffer target is 20%, with a minimum equivalent to JPY 10M.

The mint cap is the total-supply cap for each dToken, denominated in the collateral asset; it is not a cap on JPYdf debt. The withdrawal waiting period is how long a withdrawal request must wait before it can be claimed when the liquidity buffer is insufficient, and the buffer target is the share of the underlying asset the Vault aims to keep for immediate withdrawals.

Liquidation and safety values (MCR, CCR, SCR, BCR, and liquidation penalties) are finalized at deployment for live branches and once before activation for reserved branches, and cannot be changed afterward. The mint cap, withdrawal waiting period (up to 30 days), and buffer target can be changed by governance through the Timelock. A change to the waiting period applies only to withdrawal requests created after the change.