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CDP Operations
Key features and capabilities of the CDP module
Here are the main operations of the CDP module:
- Borrow: After depositing assets for lending, users can choose to use their deposits as collateral on a loan for other assets.
- Liquidate: When a position is considered risky, users are incentivized to help repay the position’s debt. They earn a liquidation bonus as this action values the position's collateral value at a discount.
- Rewards: The CDP module supports external rewards for lending or borrowing a particular token. This allows external communities to bootstrap and vibrant money market for their token on Carbon.
Last modified 3mo ago