Collateralized Debt Position (CDP)

Coming soon...

Collateralized Debt Positions (CDP) is a permisionless lending mechanism made popular by the Maker protocol.

The CDP mechanism works by requiring borrowers to deposit crypto assets in return for borrowing another type of asset. This mechanism can be applied to decentralized exchanges to create a stronger demand for their native token while also providing liquidity to the exchange.

Upon the launch of CDP on Switcheo TradeHub, SWTH holders will be able to lock their tokens into a CDP and mint USD at a 500% collateralization ratio.

More details on CDP can be found here.

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