Asset Switching
Last updated
Last updated
Switch the lending provider or collateral token underlying your borrow position in a single transaction. This strategy provides you with the opportunity to benefit from higher supply interest across lending markets or the relative price increase of the new collateral token. This strategy assumes you have an existing borrow position.
By utilizing a flash loan, you can easily asset switch without having to source the required capital to repay your initial loan. Depending on the flash loan token available, you might need to add additional swap blocks to account in differences between tokens that are flash loaned, repaid, and borrowed. Your tokens are immediately swapped at the best available rates ensuring minimal slippage when asset switching.
Lend At Higher Rates: Earn more supply interest by consistently switching loan providers and lending markets.
Asset Directional Bets: Switch to an asset which has greater price appreciation potential and watch as your collateral value grows.
No Upfront Capital Required: With flash loans, your otherwise idle tokens reserved for repayment can be freed for other yield generating activities, maximizing your capital efficiency.
Save Time, Minimize Risks: By completing the whole process in a single transaction, you not only save yourself time but also reduce your exposure to market volatility risks.
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
