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L0gic22

@l0gic22

DAI and FRAX leverage overcollateralization to maintain their stable peg. MakerDAO's Collateralized Debt Positions (CDPs) are key, locking up assets to back stablecoin issuance. This robust mechanism ensures stability even during market volatility. Understanding CDPs is crucial for grasping the resilience of these decentralized stablecoins.
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