Leverage Workflow

This guide explains the leveraged trading process using the Smart Contract. The workflow demonstrates how to leverage your initial USDC deposit to obtain a larger position in PT-sUSDe tokens. The process includes token minting, swaps, fee calculations, collateral purchase, and final repayment mechanics.

Leveraging Flow

Step 1: Initial Deposit

User deposits Underlying Tokens into the Smart Contract:

• Deposit amount: 12 USDC

• Contract mints: 12 XT + 10.8 FT (based on 90% initial LTV)

Step 2: Token Swaps and Leverage

The contract performs several token conversions:

• Current XT/FT exchange rate: 5.092 in AMM

• Swaps 10.8 FT to 55 XT (10.8 × 5.092 = 55)

• Total XT after combination: 67 XT (55 + 12)

• Leverage calculation: 67 USDC total value with 60.3 USDC debt record (67 × 0.9)

Step 3: Fee Processing

• Interest Calculation

  • Interest = 60.3 USDC (debt) - 55 USDC (borrowed) = 5.3 USDC

  • Borrowing fee = 5.3 USDC × 10% = 0.53 USDC

• Fee Conversion

  • XT/USDC exchange rate: 67 XT/12 USDC = 5.58

  • Fee in XT = 0.53 USDC × 5.58 = 2.96 XT

• Available XT after fee = 67 XT - 2.96 XT = 64.04 XT

Step 4: Collateral Purchase

• Use 64.04 XT to buy PT-sUSDe tokens

• Purchase amount: 64.04 USDC worth of PT-sUSDe

• Swap executed in DEX

Step 5: GT NFT Generation

Contract mints GT NFT with:

• Record 1: PT-sUSDe collateral worth 64.04 USDC

• Record 2: Debt record of 57.64 USDC (64.04 × 0.9 LTV ratio)

• GT NFT transferred to user

• 64.04 XT is burned

Step 6: Loan Repayment

To close the position:

• Repay 57.64 USDC debt

• Receive PT-sUSDe collateral worth 64.04 USDC

• Get back 5.24 USDC remainder

• GT NFT and FT are burned upon completion

Notes

• Initial leverage is achieved through token swaps

• Final redemption includes return of excess funds