FODL Trade Lifecycle
The FODL platform combines several money "legos" of the DeFi ecosystem - flash loans and collateral lending platforms, combined with proprietary position protection bots and cross-asset price indexing - to build a fully decentralized margin trading platform.
The following describes a typical FODL trade lifecycle:
A user selects a supply asset and supply amount, a borrow asset and leverage.
The FODL platform calculates how much of the borrow asset is required to match the leverage.
When a user opens the position, FODL takes out a flash loan capable of opening the full leverage position in a single transaction.
This effectively allows the user to leverage their principal beyond the limits of the underlying platform
A user configures a stop loss bot or take profit bot.
This action sends configuration data around cross-asset price action to FODL’s bot system.
If market conditions reach the user’s configured price, FODL bots will unwrap a portion or entirety of the user’s position per configuration.
Prices are determined by price oracles of the underlying platform (ie. Compound price oracles or Aave price oracles respectively for positions on each platform)
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