

Learn and pay it forward. @scale8partners
…llateral than debt. If ETH crashed, the debt in a CDP would be worth more than the collateral held. Maker would then have the ability to recapitalize the market by automatically decreasing the supply of PETH, which would increase demand and, in turn, increase the price of Dai. This then increases the value of the collateral in a CDP and decreases the overall value of debt.