Refinancing
What is it?
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.
Background operations
The active provider for the ETH/USDC vault is Compound
Time passed and rates change
Controller checks the rates of providers
Controller indentifies the lowest rate in Aave
Controller sets Aave as the new active provider for ETH/USDC vault
Controller calls Flasher for a refinancing operation from Compound to Aave
Fuji take a USDC flashloan
Fuji repays the debt in Compound using the flashloan
Fuji withdraws the collateral from Compound
Fuji deposits the collateral in Aave
Fuji borrows USDC from Aave
Fuji repays the USDC flashloan
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