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
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)
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