Collateralized Debt Position (CDP)
What is Collateralized Debt Position (CDP)?
MakerDAO developed a technique called “Collateralized Debt Position” that locks up collateral in a smart contract in return for stablecoins, a decentralized stablecoin called “DAI.” A smart contract, a piece of collateral, and a stablecoin that has been issued and is backed by collateral define the position known as a CDP.
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