How a Self-Lending Position is Created
The self-lending lifecycle operates entirely within a single atomic transaction and interacts with multiple Peapods primitives (Pods, LVF Lending Vaults, and incentivised LP Pools):
Flashloan Paired Asset The user initiates a flashloan for the required paired asset (e.g., ETH or USDC). This mimics external capital and will be used to fund the lending pool momentarily.
Supply to LVF Lending Pool The flashloaned paired asset is deposited into the LVF lending pool associated with the target Pod. This mints a receipt token (e.g., ERC-4626 shares) representing their temporary supplier position.
Wrap Base Token and Form LP Simultaneously, the user wraps the base token (TKN) into pTKN and combines it with the receipt token to form a pTKN/Paired Asset LP. This LP is created using the incentivised AMM.
Use LP as Collateral The LP token is deposited into the LVF vault and registered as collateral for a new borrowing position.
Borrow Back Paired Asset The user borrows the same quantity of the paired asset that was initially flashloaned, using their LP as collateral.
Repay Flashloan The borrowed paired asset is used to repay the flashloan, completing the cycle.
At the end of this transaction: - The user has created a valid LP-backed LVF position - The LVF lending pool is 100% utilized - No external supplier was needed - The interest rate curve is active and visible
This design establishes demand-driven liquidity from zero and exposes the position to real yield accrual immediately.
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