# Collateral and Reserves

| TOKEN   | Max LTV | RESERVE FACTOR |
| ------- | ------- | -------------- |
| USDC    | 70%     | 10%            |
| USDT    | 70%     | 10%            |
| STONE   | 50%     | 10%            |
| USDe    | 70%     | 10%            |
| solvBTC | 70%     | 10%            |
| wstETH  | 70%     | 10%            |
| wezETH  | 70%     | 10%            |
| weETH   | 70%     | 10%            |
| wrsETH  | 60%     | 10%            |

### rToken

One important feature of Rho Markets is the "Rho Markets Interest-Bearing Token" (also known as "rTokens"). When you deposit in the Rho Markets protocol, you receive a corresponding amount of rTokens, which are pegged 1:1 to the underlying asset. rTokens generate interest directly in your wallet, so you can see your balance growing every second. This means you can choose to receive this interest in any Ethereum address.

### collateral and reserve mechanisms

Rho Markets has implemented the collateral and reserve mechanisms used by Compound Finance.

Each supported asset on Rho Markets is integrated through rToken contracts. rTokens are tokens that comply with the EIP-20 standard and represent the user's asset balance provided in the protocol. By minting rTokens, users can (1) earn interest based on the rToken's exchange rate, which appreciates relative to the underlying asset, and (2) use rTokens as collateral.

rTokens are the primary means of interacting with the Rho Markets protocol. Users can perform operations such as minting, redeeming, borrowing, repaying borrowings, liquidating borrowings, or transferring...


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