Summary
If implemented, this proposal will:
- Introduce Swap & Supply, enabling users to supply assets using any token.
- Introduce Swap & Repay, enabling users to repay debts using any token.
- Reduce user friction by combining swaps and lending actions into a single transaction.
- Improve capital efficiency and responsiveness, especially during volatile market conditions.
These enhancements aim to make Venus more accessible, efficient, and user-friendly, while maintaining the protocol’s existing safety mechanisms.
Description:
This community post outlines the proposed introduction of Swap & Supply and Swap & Repay on BNB Chain, two new features designed to simplify user interactions with Venus markets. By integrating a SwapRouter powered by an underlying DEX aggregator, each containing the liquidities of two tokens, users will be able to seamlessly enter and manage positions using any supported token, without needing to manually perform token swaps beforehand.
Context and Rationale:
Interacting with lending markets today often requires multiple steps: swapping tokens on a DEX, approving assets, and then supplying or repaying within the protocol. This creates friction, increases gas costs, and introduces execution risk during volatile market conditions.
To improve user experience and capital efficiency, Venus is integrating a new Swap API that aggregates liquidity across multiple sources, enabling more efficient pricing and execution.
The goal is to allow users to interact with Venus markets using any token they hold, while the protocol handles the required asset conversions in a single transaction.
- Swap & Supply
Swap & Supply allows users to supply assets to any Venus market using a different token than the market’s underlying asset.
For example, a user holding USDT can supply to a USDC market without manually swapping tokens. The SwapRouter will convert USDT to USDC and complete the supply in a single transaction.
This unlocks several use cases:
- Yield Optimization: Users can easily move capital into markets with higher yields without performing manual swaps.
- Portfolio Consolidation: Users can convert multiple tokens into a single target asset and supply to one market.
- Reward Compounding: Users can reinvest rewards from other protocols directly into Venus markets, even if the reward token differs from the target asset.
2. Swap & Repay
Swap & Repay allows users to repay borrowed assets using any token in their wallet.
For example, a user with USDT can repay a WBNB loan without needing to manually swap USDT to WBNB. The SwapRouter handles the conversion and repayment in one transaction.
This introduces several important benefits:
- Simplified Debt Management: Users can repay loans using available assets without additional steps.
- Liquidation Avoidance: In risk scenarios, users can quickly repay debt using any token, improving response time and reducing liquidation risk.
- Profit Realization: Users can convert profitable positions into debt repayments in a single action.
- Full Position Exit: Users can fully repay outstanding debts and close positions without manual token management.
Key Benefits
The introduction of Swap & Supply and Swap & Repay provides several improvements to the Venus user experience:
- Single-Transaction Execution: Eliminates the need for multiple steps across DEXs and lending markets.
- Improved Capital Efficiency: Users can deploy or repay using any supported asset.
- Reduced Gas Costs: Combining swap and protocol actions significantly lowers transaction costs.
- Slippage Protection: Transactions include minimum output safeguards.
- Automated Handling: Excess tokens are returned automatically, reducing manual management.
We welcome community feedback on this approach ahead of proposing it formally through a VIP vote.