In a previous article Optimize Your Lending Model we talked about the looping leveraged straregy, today we will discuss another called flash leveraged straregy.
Flash loan on ETH
Consider a user with an initial position of 10 ETH aiming for 2x Leverage in @summerfinance_.
- User provides 10 ETH
- Flash loans of Dai are utilized to borrow an additional of 10 ETH via Aave
- This results in a total of 20 ETH
- Swap ETH to stETH via 1Inch
- Deposits the stETH back into Aave
- Withdrawn the borrowed Dai
Flash loan on SUI
Consider a user with an initial position of 10 SUI aiming for 2x Leverage in @strater_sui.
- User provides 10 SUI
- Flash loans of USDC are utilized to buy an additional 10 SUI
- This results in a total of 20 SUI
- Stake SUI to receive LST variants like afSUI/vSUI/haSUI
- Deposits the LST and borrows BUCK
- BUCK is used to purchase USDC, which repays the flash loan