Instantly Swap cTokens on Compound
Tutorial: Instantly Swap cTokens on Compound
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Tutorial: Instantly Swap cTokens on Compound
Last updated
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Passive income is the money that you earn in a way that requires little to no effort. In the DeFi world, the easiest way to earn passive income is by supplying/depositing an asset to lending protocols to earn interests in return.
In our previous article, , we introduced you what interest-bearing tokens are and how to get some of them to earn passive income. In this article, we will walk you through further how to swap between cTokens to get higher APY in return.
There are three ways to swap cTokens. Two of them are for users who donât have debt on Compound and one for those who do.
If you donât have any debt on Compound and want to swap your cTokens to another cTokens to get higher APY, there are two approaches you can put into practice:
Basic level: Build combo manually
You may wonder, why canât you use the previous swap cToken combo to do the same? The answer is because you have debts on Compound. Your cTokens are, therefore, collaterals, and they are locked until a) your debts are paid or b) you supply more funds to increase the collateralization ratio. The strategy below takes b option. We use flashloan to double your supply volume first and withdraw original collateral to pay back the flashloan. In this case, no upfront funds are needed.
When using this combo set, you may notice two cubes that you donât see often, âReturn Fundsâ and âAdd Fundsâ. They are there for a reason so please, donât delete them.
âReturn Fundsâ cube means moving funds from Furucomboâs proxy contract to userâs wallet. And conversely, âAdd Fundsâ cube means moving funds from userâs wallet to Furucomboâs proxy contract.
In the example here, after you supply USDC to Compound, the cUSDC is on Furucomboâs proxy contract. You need to use the âReturn Fundsâ cube to transfer cUSDC to your wallet so that your supply position can be doubled. Then, because your cBAT is locked in your wallet until you increase your supply position, you need to use the âAdd Fundsâ cube to send cBAT to Furucomboâs proxy contract right after receiving the cUSDC.
Doesnât it sound like everything is reversed? Because it is. You receive the target cToken first and you send your original cToken later to swap.
If you have read all the way through here, youâre officially a combo master. Found which way suits you the best?
đ Bravo! Youâve swapped your cTokens. Donât forget to share your result on Twitter. đ
Pro level: Instant swap panel. Skip building. Just use Furucomboâs latest feature on the .
If you have debts on Compound and you want to swap your cTokens from one to another, well⌠itâs a bit complicated. Get ready to wrap your head around or you may jump to the end of the story â use our to execute the swapping.
Basic level:
God Level: