> For the complete documentation index, see [llms.txt](https://docs.wandfi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandfi.io/products/collateral-vault/core-concept.md).

# Core Concept

In the standard CDP model, the collateral you provide is limited to producing stablecoins like DAI. Wand, on the other hand, diversifies the potential of your collateral, allowing it to create two distinct asset types:

* USB — Stablecoin;
* xToken — Margin Token, signifying your long position in the respective collateral.