Collateralized Debt Position (CDP)

By: WEEX|2024/10/25 16:13:33
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

What is Percolator SOV (PERC) Coin?

Exciting news for crypto enthusiasts: Percolator SOV (PERC) is now available for trading on WEEX, starting February 8,…

PERC USDT Now Live on WEEX: Percolator SOV (PERC) Coin Listing

WEEX Exchange is thrilled to announce the listing of Percolator SOV (PERC) coin, bringing fresh opportunities for crypto…

Percolator SOV (PERC) Coin Price Prediction & Forecasts for February 2026: Surging After Solana Launch?

The Percolator SOV (PERC) token just hit the scene today, February 8, 2026, emerging from a tweet by…

Introducing MYX.Finance: Complete Guide to $MYX and Airdrop Opportunities

MYX Finance is a non-custodial derivatives exchange that allows on-chain trading of perpetual contracts for virtually any token with an existing AMM liquidity pool.The protocol was designed to significantly reduce the capital requirements for liquidity providers, eliminate network-related obstacles for traders, and simplify the overall trading experience—making sophisticated derivatives trading as straightforward and accessible as executing a simple spot swap. Learn its tokenomics, ecosystem impact, and how to claim free tokens in the WEEX $50,000 MYX.Finance airdrop before Feb.13, 2026!

What is Crude Oil (CRUDEOIL) Coin?

We are excited to announce the new listing of the Crude Oil (CRUDEOIL) token trading pairs on WEEX,…

WEEX Debuts CRUDEOIL USDT Pair: Crude Oil (CRUDEOIL) Listed

WEEX Exchange is excited to introduce the CRUDEOIL/USDT spot trading pair, bringing Crude Oil (CRUDEOIL) to our platform…

Popular coins