LeoBoost
[Coming Soon]
What is Leo Boost?
Leo Boost is a leverage automation tool built atop looping strategies within the Leo Finance ecosystem. It streamlines the process of leveraging positions by automating multiple loops into a single action. With Leo Boost, users can efficiently open and close long or short positions with just one click.
Key Benefits
One-Click Leverage: Simplifies the complex, manual process of looping positions.
Flash Loan Integration: Uses flash loans to boost liquidity, enabling efficient margin management.
Optimized for the SONIC Ecosystem: Built to integrate seamlessly within Leo Finance, with future interoperability across DeFi protocols in the SONIC ecosystem.
How It Works
Example Scenario
Let’s say you want to open a long position for wBTC/USDC. Traditionally, this would require several repetitive steps:
Deposit wBTC as collateral.
Borrow USDC against your wBTC.
Swap the borrowed USDC to wBTC.
Repeat the deposit-borrow-swap cycle until reaching the desired leverage.
Leo Boost automates these steps using flash loans:
Step 1: User initiates a flash loan with margin for wBTC to cover the desired leverage
Step 2: Deposits the wBTC (margin + flash loan amount) as collateral on Leo Finance.
Step 3: Borrows USDC and swaps it for wBTC.
Step 4: Repays the flash loan with a small fee, completing the leverage position in a single transaction.
To close the long position, Leo Boost reverses each step, paying off the borrowed assets and retrieving the original collateral with minimal interaction required from the user. For a short position on wBTC/USDC, Leo Boost follows a similar process but with USDC as collateral and wBTC as borrowed asset. Here’s how it works:
Step 1: Leo Boost initiates a flash loan with USDC margin for USDC to cover the desired leverage.
Step 2: The protocol deposits the USDC (margin + flash loan amount) as collateral on Leo Finance.
Step 3: Leo Boost borrows wBTC and immediately sells it to acquire USDC.
Step 4: The flash loan is repaid with a small fee, finalizing the short position in a single transaction.
Model
Architecture
Leo Boost is structured as a Beacon Proxy, which allows for the separation of account liquidity calculations. This design isolates Leo Boost's leveraged positions from a user’s main portfolio on Leo Finance, enhancing modularity and security.
Fees
There are fees associated with this strategy:
Flash loan fees depend on the flash loan provider, ranging from 0.09% on Aave to 0.3% on Uniswap
DEX Swap fees - Swapping between the Quote & Base tokens depends on the DEX
LeoBoost fees - 0.1% fees towards the protocol treasury
Future Potential
This architecture also supports future interoperability, making it feasible to expand Leo Boost into other DeFi protocols within the SONIC ecosystem, providing a broader range of strategies and liquidity sources.
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