How LYA Works
Opening a Position
When you click ‘Invest’:
We initiate a flash loan to borrow the exact amount needed
Your collateral plus the flash loan amount is deposited into lending protocols
We borrow against this collateral at the optimal loan-to-value ratio
The borrowed funds are swapped for more of your yield-generating asset
The flash loan is repaid
This entire process happens in a single transaction, saving you gas fees and eliminating the complexity of manually creating leveraged positions.
Closing a Position
When you decide to close your position, all you have to do is select "Close Position" from your dashboard. We unwind your position by reversing the steps used to create it:
A flash loan is taken to close the position in a single transaction
Our routing ensures you get the best possible exit price
Your original collateral plus any profits are returned to your wallet immediately
In the case of low liquidity for restaking tokens, we initiate a native unstake to get your deposited collateral back, which takes two epochs (~3 days).
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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