MakerDao is a decentralised multi-collateral Dai system through which anyone can mint the Dai stablecoin against crypto collateral assets. Dai is one of mainstream crypto assets that attempts to maintain a stable 1:1 value with the US dollar by locking other crypto assets in smart contracts.
MakerDao provides three vault types with various parameters (i.e. collateralized asset, collateralization ratio, stability fee and liquidation fee) for Lido users:
CRVV1ETHSTETH-A (Curve stETH LP)
Note: Before creating a CDP on Ethereum mainnet, you could enable DeFiSaver or InstaDapp Simulation mode for a trial.
Visit the DeFiSaver MakerDao page.
Choose the collateral asset. Lido users have 3 options (i.e. wstETH-A, wstETH-B and Curve stETH LP). As stated above, Each option has different parameters like collateralization ratio, stability fee and liquidation fee.
Choose the collateral amount.
Choose the Dai amount to mint. Make sure you have a health collateral ratio to avoid liquidation.
Confirm the CDP creation. You may be asked to create a smart wallet if it is your first time to use DeFiSaver. After the transaction is confirmed, you will receive the Dai you borrowed.
Managing your position
On the CDP management page, you can see all active vaults’ statistics. Also, you could take more actions on your vault including:
BOOST: generate Dai to buy wstETH and add it to your vault.
REPAY: take out wstETH to buy Dai and pay back debt.
SUPPLY WSTETH: add more wstETH collateral to your vault.
WITHDRAW WSTETH: withdraw wstETH collateral from your vault.
BORROW DAI: generate more Dai from your vault.
PAY BACK DAI: pay back the Dai debt of your vault.
Pay back Dai
You can repay any amount of your borrowings at any time in two ways. If you have enough Dai in your account, you can directly pay back Dai. Otherwise, take out wstETH to buy Dai and pay back debt in a single transaction.