As a DeFi user, I often encounter situations where I want to switch (or exchange) assets that I'm borrowing or using as collateral in a lending protocol such as Navi. For example, if I want to switch a loan from USDT to USDC, I first need to repay the USDT debt before I can borrow USDC. However, sometimes I don't have enough USDT on hand to cover the debt first, leaving me stuck.
The solution is to leverage flash_swap, which splits the swap process into two steps: flash_swap and repay_flash_swap. In the flash_swap operation, you initiate a swap from asset A to asset B, with the promise to return the equivalent of asset B in the repay_flash_swap step. This allows you to obtain asset A to repay the debt, and then borrow asset B to complete the repayment of the flash swap.
The next logical step is to implement the same mechanism for the collateral side. There are also several additional ideas to explore for rebalancing portfolios and optimizing asset management.
I'm considering to write a post to describe my overall experience of interacting with Sui (which is quite positive!) next week!
Live on https://navi-cetus-swap.vercel.app (mainnet)
Appreciate your feedback (I'm testing with my own funds on the mainnet, but consider it's an alfa software)!