Collateralized Debt Position (CDP)

By: WEEX|2024/10/25 08:13:33
0
Share
copy

A Collateralized Debt Position (CDP) is a decentralized finance (DeFi) tool used in platforms like MakerDAO, where users lock up cryptocurrency as collateral to generate a loan in the form of stablecoins, such as DAI. CDPs allow users to leverage their assets without selling them by borrowing stablecoins against the locked collateral. The value of the collateral must exceed the loan value to account for market volatility. If the value of the collateral falls below a certain threshold, the CDP is liquidated to repay the loan, and the user loses their collateral. The key benefit of CDPs is that they enable decentralized borrowing without the need for traditional financial intermediaries. CDPs form the backbone of many DeFi lending platforms, allowing users to access liquidity while retaining exposure to their underlying assets.

You may also like

PYBOBO USDT Now Live: Capybobo (PYBOBO) Coin Listed on WEEX

WEEX Exchange has officially listed Capybobo (PYBOBO) Coin, introducing the PYBOBO USDT trading pair to its spot market.…

What Is USOR Crypto? An Ultimate 2026 Guide to the USOR Coin Meme Token

What is USOR crypto in 2026? Learn how USOR coin works, why it went viral, its oil narrative, on-chain risks, and what traders should know before investing.

How AI Trading Crushes Human Traders: 5 Key Lessons from WEEX's $1.8M Trading Hackathon

See how Shanghai's AI trading bot outperformed humans 24/7 in WEEX's $1.8M hackathon. Discover 5 game-changing strategies from top teams using autonomous agents and real-time risk control.

Introducing Pump.fun Complete Guide to $PUMP and Airdrop Opportunities

Pump.fun ($PUMP) is the turbocharged memecoin launchpad shaking up the Solana ecosystem, letting anyone spin up a token in seconds and trade it instantly—no presales, no rugs, just pure, chaotic fun. Learn its tokenomics, ecosystem impact, and how to claim free tokens in the WEEX $50,000 $PUMP airdrop until Feb.03 2026!

What is USOR Crypto? Everything You Need to Know

USOR (United States Oil Reserve) is a cryptocurrency built on the high-speed Solana blockchain. It aims to provide a transparent, blockchain-native representation of themes tied to U.S. oil reserves. It's crucial to understand that USOR is a narrative-driven digital asset, not a direct claim on physical oil barrels.

Is Boundless (ZKC Coin) a Good Investment? Boundless (ZKC Coin) Price Prediction 2026

For those who have done their research, knowing "how to buy Boundless (ZKC) on weex exchange" is straightforward. WEEX provides a secure gateway.

Popular coins