Thread by @daveytea

I created the first 'Collateral Swap': Swapping the underlying collateral in a @MakerDAO Vault/CDP with another asset, using @AaveAave 's flash loan feature and @UniswapExchange for collateral conversion, all in one transaction w/o liquidation. 😇

#DeFi #composability #ethereum

Use case: swap the underlying collateral of a debt position for a better performing asset, without needing to payback the loan / lose your DAI position(s)

Example: if ETH price ⬇️, BAT price ⏫, then it's safer to have your collateral in BAT.

There's probably an arbitrage use case as well ...🤔

ETH vault -> BAT vault tx: etherscan.io/tx/0xf0c72b0e6…

BAT vault -> ETH vault tx:
etherscan.io/tx/0x642f39c1e…

#YOLO #notAudited

The contract uses @MakerDAO 's standard DSProxy contracts, so if you've opened a vault using Oasis.app/borrow, then your vault will automatically be compatible.

#openStandards

No front end yet, but if you're interested in using it follow this thread or DM me.

🙏 Props to @StaniKulechov and @nanexcool for the idea:

https://twitter.com/StaniKulechov/status/1218161702472224769

Special thanks to eboado @lemiscate @gbalabasquer @vamsiraju for helping me navigate the protocols

@StaniKulechov @nanexcool @lemiscate @gbalabasquer @vamsiraju Thanks to everyone that showed interest! You can now try it yourself on mainnet:
👩‍🔬 collateralswap.com 🧪

Make sure you read everything on the website carefully before you execute the transaction!

If you'd like to contribute to help fix my ghetto design skills, DM me. 🙏

@StaniKulechov @nanexcool @lemiscate @gbalabasquer @vamsiraju Also just open sourced the front end, PRs welcome: github.com/mrdavey/Collat…