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Need your input! Trade your collateral.

Need your input! Trade your collateral.

Etherum Reddit

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Need your input! Trade your collateral.

Hello!

My friends and I are working on a platform "Deflast" to trade Compound collaterals with flash loan. The idea is to free up collaterals and to better leverage those assets.

The idea is to solve the below problems:

  1. Currently, if your collateral is depreciating, you could try to stop-loss by a few steps: Repay your debt -> withdraw your collateral -> Swap your collateral to a less-depreciated asset -> deposit this new collateral -> get a new loan with the new collateral. ===> Several steps involved (time++), several transactions involved (cost++), not to mention that you can only do these with at least 2 platforms (Compound + Uniswap for example).
  2. Currently, if the saving interest rate of your collateral is lowering, you could try to increase the rate by a few steps: Repay your debt -> withdraw your collateral -> Swap your collateral to an asset with a higher saving rate -> deposit this new collateral -> get a new loan with the new collateral. ===> Several steps involved (time++), several transactions involved (cost++), not to mention that you can only do these with at least 2 platforms (Compound + Uniswap for example).

How it works?

Once you decide how much collateral you want to trade, our platform will do the follows:

  1. We call flash loan to borrow extra capital.
  2. Deposit this extra capital to your Compound account.
  3. Withdraw your original Compound collateral.
  4. Swap your Compound collateral to the asset you preferred.
  5. Repay the capital back to flash loan.
  6. Deposit the rest capital back to your Compound account.

All these steps will be completed in 1 single transaction. Save your time and save your collateral.

The smart contract is ready, and the website is coming soon. We will start from the collaterals on Compound, but the concepts can work on other platforms as well and we aim to integrate them all.

How do you think about this? Any comment is highly appreciated ;)

A sample on mainnet! Powered by Compound + Flash Loan + Uniswap

submitted by /u/freedivesavvy
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