📈Ultraswap

Folks Finance users often utilize loan looping as a strategy to increase their market exposure. UltraSwap has made this process much more convenient and efficient. With just a few clicks, users can now achieve their desired outcome. By utilizing Loans, Flash Loans and Folks Router, users can perform an UltraSwap within a single transaction group, providing a quick and user-friendly experience while maintaining control over their token interactions.

How to Open a Position

1. Click on the "UltraSwap" button to view a list of available tokens

2. Choose the desired action (Up, Down, or Convert) for the token you wish to interact with

3. Type in the quantity of tokens to exchange and the operation multiplier (operation multiplier only available for Up and Down)

4. Choose between Stable and Variable APY

5. Click on the "Open Up/Down" button and confirm with your wallet

6. Sign with your wallet

The expected outputs of the operation will depend on the token price’s change over time.

How to Close a Position

1. In the “Your Ultraswap Positions” click on the position you want to close

2. Click on the “Bin” logo

3. Click on Close

4. Sign with your wallet

Operation Multiplier

Operation Multiplier refers to the practice of using Folks Finance's lending-related smart contracts to borrow funds to increase the size of the position. The multiplier allows users to control a more significant position with a relatively smaller amount of their own capital.

For example, if a user has a 2x multiplier (2:1), it means that for every $1 of their asset, they control a $2 position. If they have a margin of $1,000, with a 2x multiplier they control a position worth up to $2,000.

New Loan Types

Two new loan types have been created to support the Down and Up operations. These loan types only allow a single collateral and single borrow to be present in a given loan. In addition, the liquidation bonus will be paid out proportionally according to the formula:

$$collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)$$

The above formula should ensure that when a loan exceeds its max LTV ratio, the whole loan is effectively wiped out because its LTV ratio is unaffected from any liquidation.

The Up Loan Type allows all available tokens to be used as collateral and only USDC to be borrowable. The borrow factor for USDC will be 100%. This means that the maximum LTV ratio is defined as:

$$Max\ LTV\ Ratio = CF$$

Where:

• CF is the collateral factor of the collateralized asset

This Down Loan Type allows only USDC to be used as collateral and all available tokens to be borrowable. The collateral factor for USDC will be 100%. This means that the maximum LTV ratio is defined as:

$$Max\ LTV\ Ratio = \frac{1}{BF}$$

Where:

• BF is the borrow factor of the borrowed asset

Flash Loans

Flash loans are unique loans that must be repaid within the same transaction block. This requires users to possess the necessary funds for repayment before the transaction block is finalized. Flash loans are commonly used for quick token interactions and adjustments.

In the context of UltraSwap, users can utilize a flash loan to temporarily access the desired asset, complete the operations, and then repay the loan using the proceeds. This can be accomplished within a single transaction group.

Up Parameters

Liquidation bonus defined as:

$$collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)$$

Asset	Collateral Factor	Borrow Factor	Collateral Cap ($)	Liquidation Max	Liquidation Fee	Max Multiplier	Max starting Multiplier
USDC	N/A	100%	N/A	100%	N/A	N/A	N/A
ALGO	82.5%	N/A	200,000	N/A	10%	5.71	5
goBTC	90%	N/A	50,000	N/A	10%	10	8
goETH	90%	N/A	50,000	N/A	10%	10	8
wBTC	90%	N/A	50,000	N/A	10%	10	8
wETH	90%	N/A	50,000	N/A	10%	10	8

Down Parameters

Liquidation bonus defined as:

$$collateral\ received = loan\ collateral \times \left(\frac{borrow\ repaid}{borrow\ balance}\right)$$

Asset	Collateral Factor	Borrow Factor	Collateral Cap ($)	Liquidation Max	Liquidation Fee	Max Multiplier	Max starting Multiplier
USDC	100%	N/A	400,000	N/A	10%	N/A	N/A
ALGO	N/A	121.21%	N/A	100%	N/A	4.71	4
goBTC	N/A	111.11%	N/A	100%	N/A	9	7
goETH	N/A	111.11%	N/A	100%	N/A	9	7
wBTC	N/A	111.11%	N/A	100%	N/A	9	7
wETH	N/A	111.11%	N/A	100%	N/A	9	7