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CDP Operations

Key features and capabilities of the CDP module

Here are the main operations of the CDP module:

  • Lend: Users can lend multiple assets at a time, to earn an interest on each of their assets.

  • Borrow: After depositing assets for lending, users can choose to use their deposits as collateral on a loan for other assets.

  • Mint: After collaterizing their lent assets, users can also choose to mint the Carbon stablecoin.

  • 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.

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