How It Works
User Interaction: A user deposits capital (e.g., $1000 USDC) and selects a vault or liquidity strategy, such as ETH/USDC in a Uniswap v3 pool.
Leverage Request: The user selects leverage (e.g., 3x). The LeverageManager borrows $2000 USDC from the internal undercollateralized lending market.
Position Deployment: The full $3000 is deployed into a pre-audited, composable ERC-4626 vault that manages the LP exposure.
Position Tracking: The vault returns shares to the LeverageManager, which logs the user’s position in a persistent off-chain/on-chain registry (ID, collateral, debt, strategy, etc.).
Automated Management: The vault strategy handles deposits as part of a unified liquidity position for gas efficiency. It autocompounds, rebalances, and reports Net Asset Value (NAV).
This model allows high-throughput leveraged farming with minimized gas costs, centralized strategy management, and modular credit risk per vault.
Why the LeverageManager Gate?
By isolating borrowing power to the LeverageManager, Aurelia avoids user-induced debt exploits while still offering undercollateralized exposure. This architecture:
Ensures vaults are pre-approved, composable, and controlled
Protects against flashloan-style abuse
Enables real-time safety logic and user position tracking
Keeps the borrowable pool under tight governance oversight
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