FLOAN - Cross-chain Debt Teleporter

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.

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