Flash Borrow

Flash borrow is a more composable type of flash loan.

When a user creates a position, rather than having to deposit collateral before borrowing such that position is healthy, a user can:

  1. Borrow tokens

  2. Use the borrowed tokens for arbitrary actions in integrated protocols

  3. Deposit collateral to ensure position is healthy

All of that, within one transaction. This allows users to borrow A to interact with integrated protocols, to return B as collateral – which maximizes composability.

Ultimately, this simplifies the looping process, position rebalancing, and minimizes gas fees.

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