How Collateral Swap Works
You select your target collateral that gives you a higher yield
A smart contract handles everything in one transaction:
Takes out a flash loan in your target collateral asset
Deposits this as new collateral
Transfers your debt to the new collateral position
Withdrew your original collateral
Repays the flash loan with your original collateral
Your debt remains unchanged – Same amount, same terms
Your new collateral immediately starts earning higher yields
The entire process executes atomically in a single transaction, which means:
No price exposure risk during the swap
No need to have extra funds in your wallet
No multiple transaction approvals
No risk of liquidation during the transition
No interruption to your borrowing position
making your capital work harder, in one click.
Flash Loan Fees
Asgard sources flash loans from different venues like Marginfi and Kamino. Presently, these sources do not charge any fees for flash loans, but this may change over time. When they do, it will be reflected in the UI for the borrower.
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