Cross Protocol Swaps

Cross Protocol Debt and Bond Swaps

Cross protocol swaps is currently under development and will roll out as part of Irrigation's expanding roadmap.

What is Cross Protocol Swaps?

Irrigation allows for the buying and selling of tokenized debt and bonds across protocols. Fair market swaps can be made seamlessly from one bond to another while maintaining the base underlying value denominated in Irrigation Droplets.

A-Tranche and B-Tranches from the Farmer’s Market and Bond Tokens acquired from Bond Protocol can also be bought and sold versus whitelisted Defi stables.

Example:

Publius would like to move from his Beanstalk Pods into Ohm Bonds since he thinks he can see greater immediate liquidity or value by doing so.

Publius tranches his pods in a 20/30/50 tranche contract using the Farmer's Market for a total FMV(fair market value) of $10,000 USD.

He now has three tranches representing his $10K FMV worth of pods:

A Tranche= $2000 FMV of pods

B Tranche= $3000 FMV of pods

Z Tranche= $5000 FMV of pods

He is now able to swap those A and B Tranches valued at $5,000 USD into Bond Protocol Ohm Tokens, assuming there was a partner for the swap on the other side.

Let's look at the other side:

Zeus purchases a 6-Month Olympus Bond via Bond Protocol and is issued time-locked, Bond Protocol tokens. His bond value is worth $10,000 (~1000 ohm).

He would then be able to swap a portion of those locked Bond Protocol Ohm tokens into A and B Tranche tokens assuming there was a partner for the swap on the other side.

Zeus checks the listings and executes a swap with Publius.

Publius now has:

500 Bond Protocol Ohm tokens that are time-locked worth $5,000 USD

5000 Z-Tranches representing $5,000 FMV of pods

Zeus now has:

2000 A Tranches representing $2,000 FMV of pods

3000 B Tranches representing $3,000 FMV of pods

500 Bond Protocol Ohm tokens that are time-locked

*Both Publius and Zeus have the same underlying USD value they started with but diversified their debt holdings.