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aave-unwind

Contract

Unwind.sol can be used by users to unwind their levered positions by:

  1. Flashloaning the debt/borrowed asset from Balancer/Aave-v3.
  2. Repaying the debt with the flashloaned assets.
  3. Withdrawing the freed up collateral.
  4. Dumping the freed collateral for debt asset.
  5. Repaying the flashloan from the swapped collateral.

This allows users to unwind their levered positions without looping through number of withdraw collateral, swap, repay debt transaction cycles by utilizing flashloans.

Note: Users have to approve their collateral aToken to the contract so it can tranferFrom the user and withdraw the collateral.

At the end of Unwind.unwind transaction all the remainder collateral and debt token assets are returned back to the user.

A similar contract and script can also be written for levering up. Maybe something for future if I find some personal use for that case. New users can also just use something like DefiSaver or InstaDapp DSAs to open/close levered positions. I personally needed this script for an existing position on an EOA.

This repo can serve as a good example of how to integrate and utilize flashloans securely with relevant checks on callbacks, forge FFI in scripts, and also generally how you can use forge scripts to orchestrate actions from your EOAs too.

Script

Unwind.s.sol can be used by users to unwind their positions as a series of necessary txs and encoding calldata, etc. It has code for using OpenOcean and Odos aggregators and their APIs for figuring out the swap paths for optimal collateral swap outputs. More aggregators can be integrated similarly.

forge script ./script/Unwind.s.sol --rpc-url ... --private-key ... --broadcast