Interest-bearing collateral tokens of the Hundred Finance protocol
When tokens are supplied to the Hundred Finance protocol’s various markets, corresponding hTOKENS are minted and received by the supplier’s wallet (eg. ETH mints hETH). These hTOKENS are the interest bearing, tokenized representations of user deposits issued according to the ERC20 standard. Whenever a user mints, redeems, borrows, repays, liquidates an account, or transfers hTOKENS, they are doing so through an interaction with the relevant hTOKEN contract.
All token markets on Hundred Finance have their own supply interest rate. Every block the hTOKEN increases in value relative to the underlying asset through the automated application of interest owed by borrowers to its redemption value. Even while the number of hTOKENS in a user's wallet stays the same, if other users are borrowing that asset then the hTOKENS' value increases. As a result they do not possess a 1:1 exchange rate with the underlying asset (1 USDC is not equal to 1 hUSDC).
A user’s hTOKENS are visible on the block explorer of the chain on which they reside. For example, a user can view their Ethereum mainnet hTOKENS by navigating to their wallet address on Etherscan. Due to hTOKENS following the ERC20 standard, they are transferable like any other standard ERC20 token. It is necessary, however, to be aware that due to hTOKENS acting as collateral for borrows on the platform, transfer transactions will fail if they would result in the user's account entering an undercollateralized state.