# CDP (Collateralised Debt Position)

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**Publisher:** Decentralized Finance Publication

## Definition

A smart contract mechanism where users lock crypto assets as collateral to mint (borrow) a stablecoin. The CDP enforces over-collateralisation — you must deposit more value than you borrow — and automatically liquidates collateral if the value falls below the minimum ratio. MakerDAO's Vault (which mints DAI), Liquity's Trove (which mints LUSD), and Curve's crvUSD positions are all CDPs.

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Canonical: https://decentralized-finance.io/glossary/cdp-collateralised-debt-position/