How it works

Users can deposit on chain A and take out a loan on chain B by opening a debt position. This is the core feature made available with Fuji V2. We define a debt position as an atomic unit that 1) exists on a single chain, 2) is represented by two assets: collateral and debt, and 3) is related to a specific user.

The whole process of depositing and borrowing is done in a single transaction through a cross-chain call. The operation is asynchronous, meaning that there’s some latency between the act of locking the collateral on the source chain and the moment of releasing the loan on the destination chain. Depending on the availability of the assets and the user’s choice, there are two ways to accomplish the desired result:

  1. Bridge the collateral to the destination and open the position there

  2. Open the position on the source chain and bridge the loan to the destination chain

We can get even through a three-chain operation thanks to a nested cross-chain call. For example, deposit and bridge on chain A, open a position on chain B, and get the borrowed amount on chain C.

Last updated