# PHT Overview

**APACX's Peso-Pegged Stablecoin Philippines Token (PHT)** is the new generation stablecoin for the Philippines market currently deployed on Ethereum and Tron.

PHT integrates MakerDAO’s Multi-Collateral Dai (MCD) with APACX’s proprietary innovations, enhancing security, optimizing yield mechanisms, and building a comprehensive infrastructure that supports both on-chain and off-chain use cases, thereby fostering mass adoption in the Philippines.

### How PHT Works

{% hint style="info" %}
Certain features of PHT and it's Multi-Collateral System **have not yet been activated** and will only be implemented upon the official launch of the Full Version 1 System, as specified in the [Technical Roadmap](/technical-roadmap.md).
{% endhint %}

PHT smart contract allows users to mint PHT by collateralizing approved assets like stablecoins (USDC, USDT at initial stage)  in Vaults through the APACX Portal and other platforms. Users deposit collaterals, which are locked in the Vault, to generate PHT. After minting, users can repay the borrowed PHT with Stability Fees incurred, and withdraw their collaterals once the debt is cleared.

The Stability Fee, paid in PHT, contributes to the protocol's reserves. If the collateral-to-debt ratio falls too low, the system triggers liquidation through auctions to cover the debt. Any surplus from the auction is added to reserves to stabilize the system.

### Core Components

* **Vaults (CDPs)**: Collateralized Debt Positions where users deposit collateral to mint PHT. Each vault type has specific risk parameters.
* **Stability Fees**: Variable interest rates applied to outstanding PHT debt, denominated in PHT and accrued continuously through an accumulator formula.
* **Liquidation Engine**: Automated system that identifies and processes undercollateralized vaults to maintain system solvency.
* **Price Oracle Module**: Secure feeds providing real-time collateral price data via Chainlink oracles. [Price Feed Link](https://docs.chain.link/data-feeds/price-feeds/addresses?network=ethereum\&page=1\&search=php)
* **Decentralized Keeper Network**: Independent operators executing critical functions like liquidations and oracle updates.
* **Emergency Shutdown Module**: Last-resort mechanism to gracefully unwind the system and return collateral to users.


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