CDP seems to be a scared conception. If the ether rate is decreasing dramatically and there is a shortage of the collateral, which cannot be covered, what to do?
Someone else like a liquidity provider has to cover it to hold position? If the borrower of DAIs (SAIs) is not able to return to the LP ethers his/her position will be forcibly closed.
I think that the DeFi is nice for miners and people who earn in ethers permanently. Although in case of high volatility their loans through Compound, let’s say, can be impacted by collateral cryptos rate plummeting and people would receive some alt coins, very cheap priced, instead of the USDT.
Is there any way to hedge these risks?