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What is MakerDAO and how does DAI work?CDP, as it is often called, is a position characterized by a smart contract, a collateral and an issued collateral-backed stablecoin. MakerDAO is an ethereum-. A collateralized debt position (CDP) is the position created by locking collateral in MakerDAO's smart contract to generate its decentralized stablecoin. CDP stands for Collateralized Debt Position and the MakerDAO CDP is a type of loan administered by a smart contract system that runs on the Ethereum.
