Collateral Tokens
USD hard pegged stablecoins held in Collateral Reserve
Collateral Tokens are specific external ERC20 contracts with strong pegs to 1 USD. They serve three primary functions - minting oneTokens, redeeming oneTokens, and Collateral Ratio calculation.

Collateral in Minting and Redeeming oneTokens

Collateral Tokens are accepted and emitted in the Minting and Redemption processes. 0-n stablecoins are accepted in tandem with Project Token at a specific ratio, the Minting ratio, by the oneToken Vaults. Upon redemption of oneTokens, oneToken Vaults burn the oneTokens in return for stablecoins of equal value (Collateral Tokens) minus the redemption fee. Since more than one kind of stablecoin can exist in the oneToken Vault at any given time, multiple stablecoin options are always offered on a “while supplies last” basis.
E.g. If the contract accepts USDC and USDT as Collateral then the user may be forced to accept multiple stablecoins when redeeming their oneToken. This would be the case if their oneToken holdings exceed the USD value of a certain stablecoin in the Collateral Reserve. Thus redeeming 100 oneSUSHI when the Collateral Reserve includes 75 USDC and 75 USDT, the redeemer could elect to get 75 USDC for 75 oneSUSHI in one transaction and 25 USDT for the other 25 oneSUSHI through a second redeem transaction.
Collateral Tokens are owned by the oneToken Vault. Admission of Collateral Tokens is up to ICHI Governance which administers the oneToken Vault and enforces boundaries over oneToken deployments.
Note: Rebalancing Collateral Tokens could be accomplished manually if the oneToken Governance finds it beneficial, or automated as an ongoing process through a combination of Strategies and Controller logic.