A smart-contract vault where a user locks collateral and mints stablecoin against it.
A CDP (Collateralized Debt Position) is a smart-contract vault where a user deposits crypto collateral (like ETH) and mints a stablecoin against it, at some maximum loan-to-value ratio. If collateral value falls below a liquidation threshold, the vault is auctioned to repay the debt. MakerDAO pioneered CDPs with DAI; Liquity, Curve's crvUSD, and Aave's GHO all use variants of the design.