It refers to whether an asset can be used as collateral in a lending protocol. This is the first line of defense against infinite mint risk, or risk of market price volatility. For example, let’s assume asset ABC is enabled as a collateral. If there is infinite mint of ABC, or in the event of ABC price collapsing, we will see a flood of ABC depositing into the lending protocol and borrowing out other assets. On the contrary, if a collateral is disabled to be used as collateral in the protocol, it will substantially limit its usability and liquidity. We have introduced a Supply Cap, which helps limit the collateral risk exposure while maintaining a certain level of flexibility.