Blue Finance

Blue Finance creates special investment accounts called Vaults where users deposit cryptocurrency. These Vaults invest the deposited funds by lending them through a service like Aave and simultaneously borrowing another cryptocurrency. The borrowed funds are exchanged for more of the original cryptocurrency using a platform like Uniswap. This added cryptocurrency is then reinvested, and the process repeats. This strategy aims to amplify the returns on the initial deposit by leveraging the borrowed funds and reinvesting them.

The project is an ERC4626 vaults factory. At the moment of creation, the vaults are registered in @Superform. It integrates with Aave for lending and borrowing assets. Vaults are created with an asset, a borrowed asset and a target health factor. With this data, the Vault increases the leverage on the asset by borrowing borrow asset, swapping it on uniswap for asset and supplying it again in Aave. This is done recursively until the health factor is close to the target health factor. The rebalance function can be called at anytime. When the health factor is below the target health factor, the Vault uses @Pyth Price Feeds to calculate the amount of asset that has to be swapped for borrow asset to repay the extra debt. Testing is made very simple with @Tenderly virtual testnets, which allows to test in a real environment with thousands of dollars in assets :)