Collateralized Debt Positions

Collateralized Debt Positions (CDPs) are a smart contract based systems allowing anyone to generate Dai by leveraging Ethereum (ETH) as collateral.

MakerDAO's concept of a CDP is now one the most thoroughly tried and tested methods of decentralised lending, and the most widely adopted means of doing so today.

Sources

1. https://makerdao.com/en/whitepaper/
2. https://medium.com/block-journal/get-started-with-makerdao-cdps-and-dai-js-447c8f5eb1fa