Loan Shifter
Last updated
Last updated
Loan Shifter is a tool for one-click migration of CDPs (collateralized-debt positions) from one DeFi lending protocol to another, and/or simply doing collateral swaps or debt swaps (within the same protocol), all in one transaction.
The dashboard provides an overview of the loan shift including before and after values for relevant loan parameters, alongside the additional information (FL & service fees, price impact, etc.).
Note: Shifting both collateral and debt assets at the same time is not possible.
Users with an Aave position are also able to switch their collateral or debt asset directly through the Aave interface:
The first step would be navigating to the Aave dashboard, where you'll access your borrow position.
Once there, clicking the "Tools" icon will show a dropdown menu where you'll find:
Collateral Switch
Debt Switch
Clicking on one of these options will open a pop-up window:
In the pop-up, you'll be able to:
Choose which collateral asset you want to switch (if you have multiple in your position)
Input how much of your collateral you want to switch
Choose which collateral asset you want to switch to
See your position's new metrics after the switch
Set your exchange route
Set your slippage limit
Once everything checks out, simply click "Switch", sign the transaction, and you're good to go.
Choosing the "Debt Switch" option opens a very similar pop-up, with the only difference being that you're choosing which debt asset to switch into, and how much:
Once the Loan Shift is successful, the confirmation pop-up might seem confusing as it will show that the new debt asset was sold for the original debt asset. For example, if you're switching from DAI to USDC, the confirmation pop-up will show the following:
While this might seem incorrect - since you're moving from DAI to USDC, it's actually correct, if we consider how the debt shift works:
The new debt asset is flash loaned (USDC)
It's sold off for the original debt asset in order to repay the original debt (DAI)
The freed up collateral is now moved into the new position
The new debt asset is borrowed (USDC) and used to pay back the flash loan (USDC)
As such, the only swap happening in the transaction is selling the new, flash loaned debt asset (USDC) for the original debt asset (DAI).