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Collateralized Debt Position (CDP)

In MakerDao, a CDP behaves like a lending structure where a user can lock a certain amount of ether and withdraw DAI up to two-thirds of the amount of the locked-up ether. DAI is stablecoin that is pegged to the US dollar. To close the position, the user would be required to payback the DAI and some additional fees in order to retrieve their locked ether.
Glossary