Zap Flashloan Utility

Overview

Zap is a smart contract that facilitates stablecoin "zapping" and Synthetix native collateral unwinding by integrating flash loans from Aave and Odos swaps.

What is a Zap?

ONLY USDC is supported

USDC <--(spot market)--> sUSDC <--(spot market)--> USDx

What is Collateral Unwinding?

Flashloan Utility Flow

1. Request Flash Loans (Aave): Borrow USDC to access liquidity without posting collateral.
2. Zap into USDx (Synthetix Spot Market): Use the borrowed funds to zap into USDx.
3. Burn USDx & Repay Debt (Synthetix Core): Repay Synthetix debt by burning USDx.
4. Withdraw and Unwrap Collateral (Synthetix Spot Market): Withdraw margin (e.g., sETH) and convert it back to underlying assets (e.g., WETH).
5. Swap (Odos): Exchange collateral assets (like WETH) for USDC to repay the flash loan.
6. Flash Loan Repayment (Aave): The USDC loan, including the premium, is repaid to Aave.
7. Send Remaining Collateral (Synthetix): Any surplus collateral is returned to the user.

Key Features

• Zap via Synthetix
• Wrap & Unwrap Collateral via Synthetix
• Buy & Sell via Synthetix
• Unwind Collateral via Synthetix, Aave, and Odos
• Burn Debt via Synthetix
• Withdraw Perp Collateral via Synthetix
• Swap via Odos

Development

Build, Test, Report

1. Build the project

   forge build
   

2. Run tests

   forge test
   

3. Report Test Coverage

   make coverage
   

4. Report Gas Snapshot

   make snapshot
   

How to Deploy

• See the deployments/ folder for Arbitrum and Base deployments.

How to Deploy:

1. Create a .env file using .env-example as a reference

2. Deploy to Base

   make deploy_base
   

3. Deploy to Arbitrum

   make deploy_arbitrum
   

Audits

• See the audits/ folder for Audit reports.