> For the complete documentation index, see [llms.txt](https://edbank.gitbook.io/edbank-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://edbank.gitbook.io/edbank-docs/introduction/overview.md).

# Overview

## What is EdBankDAO?

EdBankDAO is a decentralized finance (DeFi) platform crafted for the EduChain ecosystem. By utilizing a CDP (Collateralized Debt Position) protocol, EdBankDAO empowers EDU token holders to issue stablecoins backed by their assets, ensuring a reliable and effective capital utilization method. Our main objective is to establish stable and dependable liquidity within EduChain, building a strong financial foundation for all ecosystem participants.

### Core features <a href="#core-features" id="core-features"></a>

#### Collateral Debt Position (CDP) <a href="#collateral-debt-position-cdp" id="collateral-debt-position-cdp"></a>

Inspired by MakerDAO, EdBankDAO’s CDP mechanism enables users to lock up EDU as collateral and mint stablecoins (ESD) in return, providing a safe way to utilize assets for leveraged financial opportunities.