Reading time saved: 2 minutes
0 replies, 1248 views, 8 likes
Bgdlabs has introduced the ParaSwapDebtSwapAdapter, a smart contract adapter that allows Aave users to swap any debt for variable debt of another asset in a single transaction without affecting collateral. The adapter, which is designed with a focus on security and is compatible with all Aave V2 and V3.0.1+ pools, is now public for integration with user interfaces that support Aave, marking a significant advancement in user flexibility and control over debt management on the Aave platform.
The community has been introduced to the ParaSwapDebtSwapAdapter smart contract adapter by Bgdlabs. This adapter, compatible with all Aave V2 and V3.0.1+ pools, allows Aave users to swap any debt of a certain asset for variable debt of another asset. It provides a third way to exit a position, enabling users to swap their debt in a single transaction without affecting their collateral. The process involves a series of steps including fetching a Paraswap exact out swap route, creating a variable borrow mode USDC flash loan, swapping the USDC for BUSD, repaying the BUSD debt, and using the potential margin USDC excess to repay USDC debt.
The adapter has been designed with a focus on security. It is an additional layer on top of BaseParaswapBuyAdapter and ensures repayment to the Aave pool on behalf of the user. The contract only interacts with msg.sender, providing isolation between users. It is not upgradeable and will be owned by governance. The contract also implements an upper bound of 30% price impact, which would revert any swap. However, it does not validate for frozen/inactive reserves and does not consider isolation/eMode or borrowCaps. The responsibility of handling all user position compositions and pool configurations lies with the interface integrating this contract.
Bgdlabs has made the code public, inviting entities with user interfaces that support Aave to begin integration. For AaveCompanies' app.aave.com, the existing infrastructure for Repay with Collateral, Collateral Swap, and the v2→v3 migration should simplify the integration process. Currently, the adapter only covers Paraswap, but Bgdlabs encourages other aggregators/DEXes to submit PRs on their repository for platform-specific integration. This development marks a significant step forward in providing users with more flexibility and control over their debt management on the Aave platform.
Posted 8 months ago
Last reply 8 months ago
Summary updated 2 months ago
Last updated 08/12 04:39