Swap

This section describes the swapping mechanism for cTokens

How does swapping cTokens work?

The protocol supports a swap feature that will allow to optimize liquidity by giving earners the possibility to directly swap cTokens and change their position.

If users want to swap their cTokenA for another cTokenB, they have the ability to do so without having to manually redeem cTokenA and mint cTokenB. This will be automatically handled by the protocol in the background.

The swapping ratio will be representative of the underlying assets prices and the liquidity requirements that the protocol has.

For example, if the protocol needs to attract liquidity in WBTC, the swap fee will be lower when users swap from ETH to BTC than in the opposite direction.

When swapping, if there are pending rewards to be claimed for the cToken position, those rewards would be automatically claimed to the user.