How Self-Lending Pods are Created
Last updated
Last updated
Self-Lending Pods enable instant liquidity provisioning without requiring external lenders upfront. This process involves a structured multi-step pathway to efficiently bootstrap a new Pod:
Flashloan Initiation (L1) – The user initiates a flashloan to borrow the real PairingAsset.
Supplying Liquidity (L2) – The borrowed PairingAsset is supplied to the lending pool, generating a supply receipt.
Adding to LP (L3) – The supply receipt is then combined with the original asset to form an LP position.
Collateralization (L5) – The LP position is deposited as collateral within the Lending contract.
Borrowing Back (L6) – The user borrows back the PairingAsset using the LP collateral.
Flashloan Repayment (L7) – The borrowed PairingAsset is used to repay the original flashloan, completing the cycle.