Multi Asset CDPs

What are CDPs?

A CDP is where you take out and maintain your loan. Each CDP is linked to an Ethereum address and each address can have just one CDP.

CDP maintain two balances: one is collateral comprising of muliple assets (largely, ETH and USDC/USDT/DAI) and the other is a debt denominated in LUCID. You can change the amount of each by adding collateral or repaying debt. As you make these balance changes, your CDP's collateral ratio changes accordingly.

You can close your CDP at any time by fully paying off your debt.

Managing CDPs with 2 assets.

CDPs in Lucidly Finance are designed to operate with 2 assets, one is ETH and the other is USDC/USDT/DAI.

This is to prevent blackswan events. The health factor of a CDP can be improved by rebalancing it's portfolio between the the 2 assets.

Addresses with risky collateral ratios can choose to rebalance their CDP valuations between ETH and USDC to avoid liquidations.