Swap Features

The Aave Labs interface integrates multiple features integrating token swaps detailed below.

The Swap Tokens feature enables users to swap between tokens using ParaSwap or CoW Swap as the swap provider, depending on network availability. Tokens traded using CoW Swap will incur a fee depending on token pair. A discounted fee of 15bps is applied to swaps between correlated assets (e.g. ETH/wstETH), for all other swaps a fee of 25bps is applied — the list of correlated assets is reviewed and updated periodically:

The swap adapter contracts integrate Aave's Flash Loans and the ParaSwap DEX aggregator to facilitate advanced actions such as repaying borrow positions using collateral, swapping collateral assets, swapping borrow positions, and withdrawing and swapping assets. They allow users to perform complex operations in a single transaction, leveraging the liquidity of the Aave protocol and the atomic swapping capabilities of decentralized exchanges.

The table below outlines swap feature availability across V3 markets on the Aave Labs interface:

The ParaSwapRepayAdapter contract enables users to repay their borrow positions on Aave using their supplied collateral directly, without the need to unwind their positions or provide additional liquidity. It leverages Aave's Flash Loans and the ParaSwap DEX aggregator to swap the user's collateral for the borrowed asset and repay the borrow position in a single atomic transaction.

By using this adapter, users can efficiently manage their positions and reduce their borrow positions using their existing collateral, saving on transaction costs and avoiding manual steps.

The source code is available on GitHub.

Reference Integration: useCollateralRepaySwap.tsx

function executeOperation(    address asset,    uint256 amount,    uint256 premium,    address initiator,    bytes calldata params) external override nonReentrant returns (bool)

Uses the received funds from the flash loan to repay a borrow position on the protocol on behalf of the user. Then, pulls the collateral from the user and swaps it to the debt asset to repay the flash loan.

The user should give this contract allowance to pull the aTokens in order to withdraw the underlying asset, swap it, and repay the flash loan.

Supports only one asset on the flash loan.

The params parameter should be the ABI-encoded values of the following:

Input Parameters:

Return Values:

function swapAndRepay(    IERC20Detailed collateralAsset,    IERC20Detailed debtAsset,    uint256 collateralAmount,    uint256 debtRepayAmount,    uint256 debtRateMode,    uint256 buyAllBalanceOffset,    bytes calldata paraswapData,    PermitSignature calldata permitSignature) external nonReentrant

Swaps the user's collateral for the debt asset and then repays the borrow position on the protocol on behalf of the user without using flash loans. This method can be used when the temporary transfer of the collateral asset to this contract does not affect the user's position.

The user should give this contract allowance to pull the aTokens in order to withdraw the underlying asset.

Input Parameters:

struct PermitSignature {    uint256 deadline;    uint8 v;    bytes32 r;    bytes32 s;}

Members:

The ParaSwapLiquiditySwapAdapter contract allows users to swap their supplied collateral from one asset to another in a single transaction using Aave's Flash Loans and the ParaSwap DEX aggregator.

This adapter enables users to rebalance their collateral positions without needing to withdraw and re-supply assets manually. By leveraging flash loans, the user can swap their existing collateral to a new asset and supply it back into the Aave protocol in a single transaction.

The source code is available on GitHub.

Reference Integration: useCollateralSwap.tsx

function executeOperation(    address asset,    uint256 amount,    uint256 premium,    address initiator,    bytes calldata params) external override nonReentrant returns (bool)

Swaps the received amount from the flash loan into the specified asset. The received funds from the swap are then supplied into the protocol on behalf of the user.

The user should give this contract allowance to pull the aTokens in order to withdraw the underlying asset and repay the flash loan.

The params parameter should be the ABI-encoded values of the following:

Input Parameters:

Return Values:

function swapAndDeposit(    IERC20Detailed assetToSwapFrom,    IERC20Detailed assetToSwapTo,    uint256 amountToSwap,    uint256 minAmountToReceive,    uint256 swapAllBalanceOffset,    bytes calldata swapCalldata,    IParaSwapAugustus augustus,    PermitSignature calldata permitParams) external nonReentrant

Swaps an amount of an asset to another and supplies the new asset amount on behalf of the user without using a flash loan. This method can be used when the temporary transfer of the collateral asset to this contract does not affect the user's position.

The user should give this contract allowance to pull the aTokens in order to withdraw the underlying asset and perform the swap.

Input Parameters:

The ParaSwapDebtSwapAdapter contracts allow users to swap their borrow positions from one asset to another. They leverage Aave's Flash Loans and the ParaSwap DEX aggregator to perform the swap in a single atomic transaction.

There are two versions of the adapter:

The ParaSwapDebtSwapAdapterV3 contract allows users to swap their borrow positions from one asset to another, enabling borrow position refinancing on the Aave protocol.

This adapter leverages Aave's Flash Loans and the ParaSwap DEX aggregator to perform the borrow position swap in a single transaction.

executeOperation

function executeOperation(    address[] calldata assets,    uint256[] calldata amounts,    uint256[] calldata,    address initiator,    bytes calldata params) external returns (bool)

Performs the borrow position swap operation using the received funds from the flash loan.

Performs the swap and repay operation using the borrowed funds from the flash loan, and then re-borrows the new borrow position asset to maintain the overall borrow position.

The params parameter should be the ABI-encoded values required for the operation, such as:

Input Parameters:

Return Values:

The ParaSwapDebtSwapAdapterV3GHO contract is a specialized version of the borrow position swap adapter that supports GHO, allowing users to swap their borrow positions involving GHO. It utilizes the ERC-3156 flash mint interface for GHO.

Performs the swap and repay operation using the borrowed funds from the flash loan, and then re-borrows the borrow position asset to maintain the overall borrow position.

onFlashLoan

function onFlashLoan(    address initiator,    address token,    uint256 amount,    uint256 fee,    bytes calldata data) external override returns (bytes32)

This is the ERC-3156 Flash Loan callback function that gets called when the contract receives a flash loan (in this case, flash mint) from the GHO Flash Minter.

Input Parameters:

Return Values:

The ParaSwapWithdrawSwapAdapter contract allows users to withdraw their supplied assets from Aave and swap them to another asset in a single transaction using the ParaSwap DEX aggregator.

This adapter enables users to efficiently exit positions and swap their assets without having to perform multiple transactions, reducing gas costs and simplifying the user experience.

The source code is available on GitHub.

Reference Integration: WithdrawAndSwitchActions.tsx

function withdrawAndSwap(    IERC20Detailed assetToSwapFrom,    IERC20Detailed assetToSwapTo,    uint256 amountToSwap,    uint256 minAmountToReceive,    uint256 swapAllBalanceOffset,    bytes calldata swapCalldata,    IParaSwapAugustus augustus,    PermitSignature calldata permitParams) external nonReentrant

Swaps an amount of an asset to another after a withdrawal and transfers the new asset to the user. The user should give this contract allowance to pull the aTokens in order to withdraw the underlying asset and perform the swap.

Input Parameters:

Note that in this contract, the executeOperation method is overridden but simply reverts with NOT_SUPPORTED, so it's not intended to be used.