🏦Vault Network

The Vault Network is a WW-controlled collection of single asset vaults that bots use to access flashloan capital for arbitrage, liquidation, and other DeFi uses. By using the Flash Loan Vaults, arbitrage and liquidations happen locally in a capital-efficient manner and without capital requirements. That is, each arbitrageur or liquidator will no longer need their own capital on each local chain waiting idly to arb or to liquidate because they can access a flash loan for their capital needs. When an arbitrage opportunity arises, an arbitrageur takes a flash loan, arbs the local dex price versus the WW pool, and then pays back the loan plus the flash loan fee. The arbitrageur then keeps the profit without having used any of their own capital.

Depositors of tokens into flash loan vaults benefit from fees paid when their vault is accessed for flash loans; the greater the volume, the more fees generated. Flash loan vaults are a great source of yield with no impermanent loss.

The code for the vault network can be found here.

Contracts

Name	Description
vault_factory	Factory used to create vaults
vault	Vault contract
vault_router	Makes taking flashloans easy

Graphic Overview

graph TD
    VN[Vault Network] --> VF
    VF[Vault Factory] --> Instantiate["Instantiate <br>(owner)"]
    Instantiate --> NewVault["Create new Vault <br>(owner-only)"] --> StoreState["Store in state"]
    NewVault --> V

    V["Vault Instantiate<br>(Owner, asset, state)"]

    V --> UserDeposit[User Deposit]
    V --> UserWithdrawal[User Withdrawal]
    V--> ChangeState[Change State]
    V --> UserFlashloan[User Flashloan]

    UserDeposit --> CheckAsset["Check asset sent"] --> IncrementState["Increment state"]
    UserWithdrawal --> CheckState["Check State"] --> BalanceCheck["Check user balance"] --> SendFund["Send funds to user"]
    ChangeState --> CheckOwner[Check owner] --> PerformChangeState["Change the state<br>(Can flashloan)<br>(Can withdrawal)<br>(Change owner)<br>(Can deposit)"]
    UserFlashloan --> CheckState --> SendFunds[Send the funds to the user<br>to perform flashloan] --> CheckProfit[Check for profit & deduct tax<br>send profit to user]