How Debt Swap Works

1. You check your current debt and select the recommended lower-interest rate token

2. A smart contract takes care of everything in one transaction:

   1. Takes out a flash loan in your target debt asset

   2. Uses this to repay your original debt

   3. Creates a new debt position in the target asset

3. Your collateral stays exactly where it is — untouched and still earning

4. You immediately start paying the lower interest rate, in one click.

The entire process happens atomically in a single transaction, which means:

• No need to have extra assets in your wallet to repay

• No need to do multiple transactions

You save on your interest costs, 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.