The synthetic assets (cAssets) minted by users via the protocol are backed by stablecoins, starting with USDC. We plan to expand our collateral capabilities to include more stablecoins in the future. Collateralizing cAssets with stablecoins allows for more stability since the collateral is not subject to high volatility the protocol can require lower collateralization ratios (C-ratios) and the protocol will be more capital efficient. The C-ratio of cypher contracts will initially be set at 400% and will allow for a dip to 200% before a minter runs the possibility of being liquidated. Minters incur a debt to the market they provide liquidity to. In order to receive the collateral they initially staked, minters will need to pay back debt by burning cAssets.