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What Is a ‘Vault’ or ‘CDP’ in a Decentralized Stablecoin System?

A smart contract that holds a user's locked collateral and allows them to mint the stablecoin as debt against it.
Greeks.Live23.11.25

What Is a ‘Vault’ or ‘CDP’ in a Decentralized Stablecoin System?

A Vault, or Collateralized Debt Position (CDP), is a smart contract that holds a user's locked collateral and allows them to mint a corresponding amount of the stablecoin (debt) against it. It is the core mechanism for over-collateralized stablecoin creation, managing the collateralization ratio and liquidation process.

Explain the Role of a Collateralized Debt Position (CDP) in Creating Synthetic Derivatives
How Does a ‘Vault’ Contract Manage Collateral for Multiple Derivative Positions?
What Is the Difference between Over-Collateralized and Under-Collateralized Stablecoins?
What Is a Collateralized Debt Position (CDP)?

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