Collateralized Debt Positions
Overview
Seneca is a CDP (Collateralized Debt Positions) platform. Users can use whitelisted assets as collateral to borrow senUSD, Seneca's stablecoin.
If the value of the collateral falls below a certain threshold, the CDP may be liquidated to cover the loan. Users can withdraw any excess collateral at any time.
There's zero risk when withdrawing all collateral after repaying the entire debt.
Seneca prioritizes the whitelisting of yield-bearing assets in order to allow DeFi investors to access institutional-grade borrowing, leverage, and superior capital efficiency.
Examples of those collaterals are yield-bearing stablecoins, vault tokens, deposit receipts, and LSTs.
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