For an investor using their stablecoins to generate yield, Collar hedges against the risks present when pursuing high-yield strategies. Suppose you are an investor whose favored stablecoin portfolio consists primarily of DAI, but you discover that you can increase your returns by farming protocols that require USDT. If you trade your DAI for USDT, then you are exposing yourself to the systemic risks of USDT. Collar allows you to borrow USDT using DAI as collateral, and then get back your DAI at any time without having to worry about liquidations before the end of the loan term.