What are Decentralized CDPs?
Decentralized Collateralized Debt Positions (CDPs) are smart contract-based systems that allow users to lock up cryptocurrency assets as collateral to generate stablecoins or other forms of debt. Tools in this category include platforms and protocols that facilitate the creation, management, and liquidation of these collateralized loans without relying on centralized intermediaries. Primary use cases involve decentralized borrowing, lending, and stablecoin issuance, targeting DeFi developers, protocol builders, and users seeking trustless credit solutions. Key characteristics of decentralized CDP tools include on-chain collateral management, automated liquidation mechanisms, and transparent governance models. Related categories include decentralized lending platforms and stablecoin protocols. Developers should explore decentralized CDP tools when building applications that require programmable, permissionless credit facilities or stablecoin minting capabilities.