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
Alice deposits USDT $100 in wevest.
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)
Then, 'wETH 3x Long token' is issued(Alice's USDT $300 and 'wETH 3x Long token' are swapped).
Alice receives wevest tokens as proof of this swap.
When Redeeming
Figure 10 : Borrower's swap flow when redeeming
When redeeming, the wevest token received as a proof is inserted.
Alice swaps 'wETH 3x Long' tokens for USDT(ETH current price).
After deducting 'wETH 3x Long' token issuance and redemption fees, Alice has the remainder of the settlement.
