LH3 has multiple functions in collagen modification: 1. Hydroxylation of Lysine: LH3 hydroxylates lysine residues in collagen to form hydroxylysine. 2. Glycosylation: LH3 also has glycosyltransferase activity, adding carbohydrate moieties to hydroxylysine residues. 3. Stabilization of Collagen: The modifications carried out by LH3 are crucial for the thermal stability and tensile strength of collagen fibers.