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How does the Repay feature work?

Written by Nikola Jankovic
Updated 4 months ago

The Repay feature allows you to increase your CDP’s ratio and make it safer by taking part of the ETH collateral out of the CDP, converting it to DAI and using it to pay back a part of the debt, all within a single transaction. This process is also known as graceful unwinding and the only cost of performing Repay for the user is the transaction fees.

Repaying can be extremely useful when Ether’s value is decreasing and you need to take actions to maintain your CDP’s ratio above liquidation threshold.

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