Rebalancing loan positions utilizing AAVE Flash loan
PreviousLiquidity Rebalancing: Moving Around $9.4 Million for More Fee Revenues.NextHow Does the Grok Token Exploiter Exploit the X Token By Baking His Own Cake And Eating it?
Last updated
Last updated
The user borrowed 178,963 USDC from AAVE and then repaid 890 USDC and 88 WETH. He used DEXes and Flash loans to rebalance his loan position.
Step 0: The user borrowed 178,963 USDC from AAVE
Step 1: The user sent the borrowed 178,963 USDC to Paraswap, aiming to swap for WETH
Steps 2,3: Paraswap swapped 163,810 USDC for 80.96 WETH for the user at UniswapV3
Steps 4,5: Paraswap swapped 14,238 USDC for 7.04 WETH for the user at Pancake
Step 7: Paraswap collected a fee of 25.26 USDC
Step 6,8: Paraswap returned 890.3642 USDC and 88 WETH to the user
Step 10,13: The user repaid 890.3642 USDC and 88 WETH to AAVE
AAVE: Aave is a decentralized crypto lending platform that lets users borrow and lend crypto.
Paraswap: ParaSwap is a decentralized exchange aggregator, like Booking.com but for DEX.
UniswapV3, Pancake: major DEXs.
The solid green pentagon "from" is the user's EOA.
The addresses in the box "AAVE v3" are AAVE's addresses; you can view them as one account.
The oval "Paraswap Augustus Swapper" and the box "ParaSwapDebtSwapAdapterV3GHO" are Paraswap's contracts.
The oval "FeeClaimer" is Paraswap's contract for collecting fees.
The ovals "UniswapV3Pool" and "PancakeV3Pool" are UniswapV3 and Pancake's Pool addresses.
USDC, WETH
Step 0: The user borrowed 178,963 USDC from AAVE
Step 1: The user sent the borrowed 178,963 USDC to Paraswap, aiming to swap for WETH
Steps 2,3: Paraswap swapped 163,810 USDC for 80.96 WETH for the user at UniswapV3
Steps 4,5: Paraswap swapped 14,238 USDC for 7.04 WETH for the user at Pancake
Step 7: Paraswap collected a fee of 25.26 USDC
Step 6,8: Paraswap returned 890.3642 USDC and 88 WETH to the user
Step 10,13: The user repaid 890.3642 USDC and 88 WETH to AAVE
Step 9,12: 87.96 DebtWETH and 890.36 DebtUSDC were burnt, corresponding to the user's repayment.
Step 11: 178,963 DebtUSDC were mint, corresponding to the borrow in Step 0.
There are more similar rebalances like this one, for example,
In contrast to other DeFi users, this user uses Flash Loan to rebalance his positions. Debt contracts are tricky to handle, but one can do margin trading and short. Meanwhile, he can also earn a little interest. The rebalance amount is so large that he sometimes becomes the victim of sandwich attacks, for example,
Flash loan, Rebalance
