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Glossary · C
CDP (Collateralised Debt Position)
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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