Borrower Alice

Example of a 'Free Loan' process

Let's take a look at 'Free Loan' process as an example. Example is a case in which a swap is made by making a loan for the entire $100 that Alice has.

When Borrowing

Figure 9 : Borrower's swap flow when borrowing

1. Alice deposits USDT $100 in wevest.

2. Alice takes the USDT $100 as collateral and borrows USDT $200, which is twice the collateral, and takes a position on the rise of ETH with a total of USDT $300.(Coin type: ETH, Leverage multiplier: 3x, position: long)

3. Then, 'wETH 3x Long token' is issued(Alice's USDT $300 and 'wETH 3x Long token' are swapped).

4. Alice receives wevest tokens as proof of this swap.

When Redeeming

Figure 10 : Borrower's swap flow when redeeming

1. When redeeming, the wevest token received as a proof is inserted.

2. Alice swaps 'wETH 3x Long' tokens for USDT(ETH current price).

3. After deducting 'wETH 3x Long' token issuance and redemption fees, Alice has the remainder of the settlement.