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A refinance refers to the process of revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage. When a business or an individual decides to refinance a credit obligation, they effectively seek to make favorable changes to their interest rate. If approved, the borrower gets a new contract that takes the place of the original agreement.
The refinancing function will automatically keep track of the rates across markets and swap your debt from one provider to another.
Your loan benefits from the lowest rate available, automatically, without you need to monitor the rates by yourself.
- 1.The active provider for the ETH/USDC vault is Compound
- 2.Time passed and rates change
- 3.Controller checks the rates of providers
- 4.Controller indentifies the lowest rate in Aave
- 5.Controller sets Aave as the new active provider for ETH/USDC vault
- 6.Controller calls Flasher for a refinancing operation from Compound to Aave
- 7.Fuji take a USDC flashloan
- 8.Fuji repays the debt in Compound using the flashloan
- 9.Fuji withdraws the collateral from Compound
- 10.Fuji deposits the collateral in Aave
- 11.Fuji borrows USDC from Aave
- 12.Fuji repays the USDC flashloan