Didn’t get this part...

…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.
What is Dai, and how does it work?
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Sharon Manrique
Gaurav Agrawal
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1 min read·
Feb 11, 2019
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Didn’t get this part... So if ETH price goes down... How the system with decrease the supply of PETH?
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Written by Gaurav Agrawal6.4K Followers
·9.95K Following
Telegram @gaurav_zen , Building - Coinmonks (https://medium.com/coinmonks) & CoinCodeCap (https://coincodecap.com) & Growth @ Bitquery.io
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