The Roll-to-Aave function allows borrowers to seamlessly transfer their fixed-rate debt positions on Term Structure to floating-rate debt positions on Aave without the need to repay their debts on Term Structure first. This feature provides borrowers with greater flexibility to enhance their capital efficiency.

How to roll to Aave

Users can choose to roll either a partial or the entire amount of the debt positions to Aave. If the health factor of the transferred loans remains above the liquidation threshold on Aave according to its rules, the transaction will be successfully executed. Below is a step-by-step breakdown of the process:

  1. Borrow collateral tokens via flash loan on Term Structure, and then use them as collateral on Aave to receive aToken.

  2. Borrow debt token from Aave to repay the debt on Term Structure.

  3. After repaying the debt on Term Structure, the borrower can withdraw the collateral.

  4. The withdrawn collateral is used to repay the flash loan.

The above steps will be completed in one transaction. If any of the above steps fails or if the health factor of the transferred positions falls below the liquidation threshold after the roll, the transactions will be reverted. This function allows borrowers to transfer their positions without repaying the debt and avoid liquidation before the maturity date.

We do not charge fees for users using the flash loan for the Roll-to-Aave function.

Roll-to-Aave works only when both the debt tokens and collateral tokens are supported on Aave.

When can I roll to Aave

Borrowers will be able to use Roll-to-Aave to manage their loan positions before the maturity date if an order is successfully matched and the loan position is created on-chain. This function becomes particularly useful when borrowers prefer not to repay their debts as they approach maturity.

Why did we choose Aave

We chose Aave because it has the highest liquidity among prominent lending protocols on Ethereum. In the future, we will support more protocols to provide users with more options for rolling their debt positions.

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