> For the complete documentation index, see [llms.txt](https://docs.resolv.xyz/litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.resolv.xyz/litepaper/overview/resolv-collateral-pool.md).

# Resolv Collateral Pool

To back the stablecoin, a collateral pool is allocated into crypto money market instruments. Key features of the collateral pool strategy are:

* ETH and BTC price fluctuation against USD is fully hedged with [perpetual futures](/litepaper/useful-definitions/perpetual-futures.md) to form a [delta-neutral portfolio](/litepaper/useful-definitions/delta-neutral-portfolio.md).
* USD-neutral assets allocated into DeFi asset clusters.
* The majority of collateral is held directly on-chain. A portion of collateral is held in institutional custody as margin for futures.

For details on collateral management, see Protocol Mechanics - [Collateral Pool](/litepaper/protocol-mechanics/collateral-pool.md) section.