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How It Works

This document explains the complete flow of interacting with Unbound, from deposit to withdrawal.

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Deposit Flow

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Step 1: User Initiates Deposit

The user calls deposit_and_leverage with:
  • assets: Amount of wBTC to deposit
  • flash_loan_amount: Amount of USDC to flash loan
  • min_collateral_out: Minimum wBTC expected from swap (slippage protection)
  • avnu_calldata: Pre-computed swap calldata from AVNU API

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Step 2: Flash Loan Request

Vault → Vesu Pool: flash_loan(USDC, flash_loan_amount)
Vesu transfers USDC to the Executor and calls on_flash_loan callback.

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Step 3: Executor Operations

Inside the flash loan callback, Executor performs: 
1. Swap USDC → wBTC via AVNU
2. Combine user's wBTC + swapped wBTC
3. Deposit ALL wBTC to Vesu as collateral
4. Borrow USDC from Vesu position
5. Approve Vesu to take USDC (repays flash loan)

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Step 4: Share Minting

After the flash loan completes, the Vault:
  1. Calculates shares based on deposited assets
  2. Mints vault shares (uBTC) to the user

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Deposit Flow Diagram

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Withdrawal Flow

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Step 1: User Initiates Withdrawal

The user calls withdraw_all to close their entire position.

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Step 2: Share Burning

Vault calculates the user’s share of the position and burns their vault tokens.

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Step 3: Flash Loan for Deleveraging

Vault → Vesu Pool: flash_loan(USDC, debt_amount)

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Step 4: Executor Unwind

Inside the callback: 
1. Repay USDC debt on Vesu
2. Withdraw ALL wBTC collateral
3. Swap wBTC → USDC to repay flash loan
4. Transfer remaining wBTC to user

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Withdrawal Flow Diagram

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Position State

After a successful deposit, the vault has:
ComponentLocation
Collateral (wBTC)Vesu Pool (as collateral in position)
Debt (USDC)Vesu Pool (borrowed amount)
Shares (uBTC)User’s wallet
The Vault itself holds no assets—everything is in Vesu.

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Key Functions

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deposit_and_leverage

fn deposit_and_leverage(
    assets: u256,           // wBTC amount (8 decimals)
    flash_loan_amount: u256, // USDC to borrow (6 decimals)
    min_collateral_out: u256, // Slippage protection
    avnu_calldata: Array<felt252> // Swap route data
) -> u256 // Returns shares minted

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withdraw_all

fn withdraw_all(
    min_underlying_out: u256, // Minimum wBTC to receive
    avnu_calldata: Array<felt252> // Swap route data
) -> u256 // Returns wBTC withdrawn

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View Functions

fn get_vault_position() -> (u256, u256)  // (collateral, debt)
fn total_assets() -> u256                 // Total collateral
fn convert_to_shares(assets: u256) -> u256
fn convert_to_assets(shares: u256) -> u256