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Liquity v2: Evolving Onchain Leverage
Introduction Are CDP stablecoins toast?...Liquity appears to be a strong contender for CDP resurgence with its upcoming v2 release....Let’s explore noteworthy CDPs along with their strengths and weaknesses....Most CDP’s are capital efficient yet risky, making them ideal as leverage vehicles....in their heyday. 2021 was the golden era for CDP stablecoins.
20 Min
Debt-Backed (CDP) Stablecoins
Nov 2024
The Looming Opportunity With Decentralized Stablecoins
When GHO price is below $1, users will likely seek to acquire GHO for cheap and pay off their CDP cheaply...Rather, the GHO price returns to peg by existing CDP holders unwinding their leverage or users buying...Having a CDP converted into an LP position presents risks: you can’t adjust CDP during soft liquidation...
30 Min
Stablecoins
Aug 2023
The Rise of Ethena: Unpacking The Emerging Synthetic Dollar
Conversely, Collateralized-Debt-Position (CDP) stablecoins have the opposite problem....Said differently, the scalability of CDPs such as DAI is undermined by the need to collateralize 1 DAI...Given that the Ethena model comes with fundamentally different risks relative to CDPs and RWA-backed...First, Ethena is more capital efficient than CDPs.
40 Min
DeFi
Apr 2024
A New Framework For Understanding Moats In Crypto Markets
CDPs The second stablecoin model is CDPs....Given CDPs are usually minted against crypto loans, these “stablecoins” should be viewed more as lend...as USDT, these models are far more defensible than non-CDP money markets....Moreover, unlike traditional money markets that derive their defensibility purely from TVL, CDPs are...
36 Min
DeFi
Aug 2024
A Look at Convex's Business Model and a Looming Catalyst
, assuming crvUSD as an isolated product. crvUSD is based on a unique collateralized debt position (CDP...As a CDP model, interest is accrued on every crvUSD minted, which will likely be directed back to veCRV...
10 Min
Vaults
Feb 2023
Show Me The Money
This model is generally known as a CDP, or collateralized debt position, and is a popular mechanism for...The CDP model has proven to be resilient and popular in DeFi.
7 Min
DeFi
Jul 2023
MakerDAO's 2022 Fundamentals
This model is generally known as a CDP, or collateralized debt position, and is a popular mechanism for...The CDP model has proven to be resilient and popular in DeFi....It is a testament to the MakerDAO CDP model working as intended.
12 Min
Debt-Backed (CDP) Stablecoins
Mar 2023
Solo, Liquid, or Centralized: A Guide to Staking ETH
LSD-Backed CDP Stablecoin Agility, Lybra, and Raft are all collateralized debt position (CDP) stablecoin...
16 Min
Liquid Staking
Jun 2023
Maverick Takes Aim at the DEX Landscape
...become the dominant trading pair on AMMs, and potentially the dominant collateral type for options and CDPs...
11 Min
AMM
Jun 2023
Governance Digest
Monetsupply, this forum post begins a discussion in MakerDAO about creating a product allowing for CDPs...Determining when to liquidate a CDP is a core function of MakerDAO, and difficulty surrounding pricing...Our Opinion: If MakerDAO can figure out a way to accurately price and liquidate NFT CDPs, this could...
10 Min
DAO
Jan 2022
The Year Ahead for DeFi 2024
The total value of LSDs held across DEXs, CDP protocols, and lending protocols has reached $7B....have emerged within each sector of LSDfi: Curve dominates the DEXs, MakerDAO is at the forefront of CDP...As liquid restaking cements its role in the market, money markets and CDP protocols stand to benefit...
100 Min
DeFi
Dec 2023
Delphi Office Hours Call (July 13th, 2022)
...newsletter this week, Aave Companies has proposed that Aave develop a stablecoin based on the battle-tested CDP...Medio (43:22) Obviously, we talked about the CDP model a bit earlier and that’s proven to be the most...ones that are heavily under collateralized, and then burial algorithmic and gravitate more towards a CDP-based...
50 Min
Macro & Markets
Jul 2022
Inside the Ecosystem: Fueling Aptos' Global Trading Engine
The protocol has four distinct verticals: a DEX, a money market, a CDP stablecoin (called MoveDollars...Mirage is the marriage between a CDP-stablecoin protocol and a perps DEX....One of the biggest differences to Mirage’s model is the exclusive use of exogenous collateral for CDPs...
39 Min
Infrastructure
Jun 2025
Zetachain Part 1: A Competitive Landscape of Blockchain Bridges
To name a few: A BTC backed omnichain CDP stablecoin Money markets with support for BTC, DOGE, LTC,...BTC CDP) which we’ll touch on later....Zeta can implement safer CDP or money market type borrow-lend with their omnichain smart contracts.  ...Zeta opens up the design space considerably, and allows Zeta to offer more traditional products like CDPs...
51 Min
Layer 1 / L1
Jan 2024
Your Guide to the Collateralized Stablecoin Landscape
Its native stablecoin, DAI, is created using a Collateralized Debt Position (CDP) model, and it has the...Abracadabra (MIM) Abracadabra is a CDP-based stablecoin platform, similar to DAI, that uses Kashi – the...LUSD is solely backed by ETH, using a CDP model that makes Liquity the only decentralized borrowing protocol...
21 Min
Algorithmic Stablecoins
Jul 2022
Gains Network Gains Ground
For MakerDAO, users are incentivized to mint DAI when it is above peg and to pay off their CDPs when...
11 Min
Perpetual Futures
Feb 2023
Voltz, IPOR, and the Next Wave of Interest Rate Derivatives
Voltz featured a fixed borrow module that picked up a user’s CDP and, by allowing them to overlay an...Users with USDC or DAI denominated debt were able to pay off their CDPs at a hefty discount.
22 Min
Derivatives
May 2023
Governance Digest
MakerDAO is continuing on the path of letting people borrow against tokenized real-world assets (“RWA”) in CDPs...Any RWA on Centrifuge’s Tinlake platform can apply for a CDP on MakerDAO through their MIP-6 process.
11 Min
DAO
Aug 2021
Contango: A Forward-looking Approach to Leverage
Users may loop pegged assets such as wstETH to enhance yield, or simply loop a CDP on Maker to mimic...
13 Min
DeFi
Jun 2024
Engineering Real Credit Onchain: The 3Jane Bet
$40 Bn in loans have been issued in recent quarters, with overcollateralized DeFi lending (excluding CDPs...
18 Min
DeFi
Jul 2025