Set up the Accelerated Leverage Engine

Summary

The ALE allows to leverage a user’s deposit by flash minting the required amount of DOLA to buy extra collateral and then borrowing from his escrow to repay and burn the minted amount.

It’s also designed for deleveraging by flash minting the required DOLA to repay debt, withdrawing collateral on user’s behalf and selling it for DOLA in order to burn the minted amount.

Minting and burning DOLA occurs in the same transaction and thus the DOLA total supply is unchanged.

This proposal aims to set up the Accelerated Leverage Engine (ALE) and enable it to be used by FiRM users when borrowing and repaying on approved markets.

Background

Currently when a FiRM user wants to leverage his position, is required to perform multiple transactions which turns out to be poor and costly UX: borrow DOLA, buy collateral, deposit it into the market.
Same when deleveraging: withdraw part of collateral, sell for DOLA, repay debt.

Plus there’s an associated risk when performing individual transactions that could lead to undesirable liquidations.

Solution

Enabling the Accelerated Leverage Engine as DOLA minter allows to perform multiple actions in the same transaction (including buy and sell DBRs if needed and extra Dola debt borrowing/repaying).

The ALE can also support collateral which cannot be bought on the open market by buying/staking or unstaking/selling the underlying asset (ex: st-yCRV/yCRV)

On-Chain Actions

  • Whitelist the ALE contract as DOLA minter

  • Allow the ALE contract for the borrow controller

  • Set markets to be allowed to use the ALE

4 Likes

Sorry I missed this, looks great and another building block to FiRMs success

should be implemented ASAP

1 Like