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FLOAN - Cross-chain Debt Teleporter

1-click to beam the user's debt position to their desired chain.

FLOAN - Cross-chain Debt Teleporter

Created At

ETHAmsterdam

Winner of

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πŸ† ETHAmsterdam Finalist

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πŸ₯ˆ Connext β€” Best xApp

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πŸ’Ž AAVE Grants DAO β€” Best Use

Project Description

FLOAN helps Mainnet users who want to migrate their debt positions (collateral + debt) to enjoy cheaper borrowing rates in a faster chain. Nowadays, more users are wanting to avoid operating in Mainnet due to the high gas fees, so we enable the user to bypass the cumbersome process by offering a 1-click beam of their debt position to the desired chain.

How it's Made

Intention: user wants to move position from chain A protocol X, to chain B protocol Y

Architecture:

  • One Teleporter contract on each chain. It holds liquidity to pay users debt.

  • Connext is used to bridge the assets (as a signed xcall)

  • For demo purpose, we are only using 2 chains and one protocol on each chain (Aave on Rinkeby and Compound on Kovan)

Pipeline:

  • Teleporter pays back user loan

  • Teleporter withdraws user collateral

  • User collateral is bridged to the new chain

  • Collateral is deposited on the new platform

  • With the collateral, we borrow

  • Use the borrowed assets to provide liquidity back to the pool

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