LeverageStrategiesManager

LeverageStrategiesManager

The LeverageStrategiesManager is a Venus periphery contract that enables users to enter and exit leveraged positions atomically using flash loans. It integrates with the Venus Comptroller's flash loan functionality and the SwapHelper contract to execute complex leverage operations in a single transaction.

Overview

Leverage operations in DeFi typically require multiple transactions: borrowing, swapping, and supplying assets. The LeverageStrategiesManager consolidates these into atomic operations using flash loans, eliminating intermediate exposure and reducing gas costs.

The contract supports five distinct leverage strategies:

Strategy	Description	Swap Required
enterSingleAssetLeverage	Amplify exposure to a single asset	No
enterLeverage	Enter leverage with collateral seed, borrow different asset	Yes
enterLeverageFromBorrow	Enter leverage using borrowed asset as seed	Yes
exitSingleAssetLeverage	Close single-asset leveraged position	No
exitLeverage	Close cross-asset leveraged position	Yes

Prerequisites

Before using the LeverageStrategiesManager, users must delegate borrowing rights to the contract:

// On the Venus Comptroller
comptroller.updateDelegate(leverageStrategiesManagerAddress, true);

This delegation allows the contract to:

• Borrow on behalf of the user

• Mint vTokens on behalf of the user

• Redeem vTokens on behalf of the user

• Repay borrows on behalf of the user

Inheritance

• Ownable2StepUpgradeable - Two-step ownership transfer pattern

• ReentrancyGuardUpgradeable - Reentrancy protection

• IFlashLoanReceiver - Flash loan callback interface

• ILeverageStrategiesManager - Contract interface

Immutable State Variables

Variable	Type	Description
COMPTROLLER	IComptroller	Venus Comptroller for market interactions and flash loan execution
swapHelper	SwapHelper	Token swap executor for cross-asset operations
vBNB	IVToken	vBNB market address (not supported for leverage operations)

Architecture

┌─────────────────────────────────────────────────────────────┐
│                     Venus Core Protocol                      │
│  ┌───────────┐  ┌──────────┐  ┌────────────────────────────┐│
│  │Comptroller│  │  vTokens │  │    Flash Loan Module       ││
│  └─────┬─────┘  └────┬─────┘  └─────────────┬──────────────┘│
└────────┼─────────────┼──────────────────────┼───────────────┘
         │             │                      │
         │             │                      │
┌────────┼─────────────┼──────────────────────┼───────────────┐
│        ▼             ▼                      ▼               │
│  ┌─────────────────────────────────────────────────────────┐│
│  │            LeverageStrategiesManager                    ││
│  │  - Enters/exits leveraged positions                     ││
│  │  - Orchestrates flash loans and swaps                   ││
│  │  - Validates account safety                             ││
│  └──────────────────────────┬──────────────────────────────┘│
│                             │                               │
│                             ▼                               │
│  ┌─────────────────────────────────────────────────────────┐│
│  │                    SwapHelper                           ││
│  │  - Executes authorized swaps                            ││
│  │  - Verifies backend signatures                          ││
│  │  - Interacts with DEX protocols                         ││
│  └─────────────────────────────────────────────────────────┘│
│                     Venus Periphery                          │
└─────────────────────────────────────────────────────────────┘

Transient Storage (EIP-1153)

The contract uses EIP-1153 transient storage to pass state between entry functions and flash loan callbacks. These values are automatically cleared at transaction end:

Variable	Type	Description
operationType	OperationType	Current operation being executed
operationInitiator	address	Original msg.sender of the entry function
collateralMarket	IVToken	Target collateral market
collateralAmount	uint256	Collateral seed or redeem amount
borrowedAmountSeed	uint256	User-provided borrowed asset seed
minAmountOutAfterSwap	uint256	Slippage protection threshold

Solidity API

enterSingleAssetLeverage

Enters a leveraged position using the same asset for collateral and borrowing. No swap is required.

function enterSingleAssetLeverage(
    IVToken _collateralMarket,
    uint256 _collateralAmountSeed,
    uint256 _collateralAmountToFlashLoan
) external

Parameters

Name	Type	Description
_collateralMarket	IVToken	The vToken market to use for both collateral and borrowing
_collateralAmountSeed	uint256	Amount of underlying tokens the user provides as initial capital
_collateralAmountToFlashLoan	uint256	Amount to flash loan for leverage amplification

Example

User has 10 ETH and wants 2x exposure:

• Provide 10 ETH as seed

• Flash loan 10 ETH

• Supply 20 ETH as collateral

• Final: 20 ETH collateral, 10 ETH debt (plus fees)

Events

• SingleAssetLeverageEntered emitted on success

• DustTransferred emitted if residual tokens remain

Access Requirements

• User must have delegated to this contract via Comptroller.updateDelegate

Errors

• ZeroFlashLoanAmount if _collateralAmountToFlashLoan is zero

• MarketNotListed if market is not listed in Comptroller

• VBNBNotSupported if the market is vBNB

• NotAnApprovedDelegate if user has not delegated to this contract

• AccrueInterestFailed if interest accrual fails on the market

• EnterMarketFailed if entering the market fails

• OperationCausesLiquidation if pre/post position is unsafe

---

enterLeverage

Enters a leveraged position by providing collateral seed and borrowing a different asset. The borrowed asset is swapped to collateral.

function enterLeverage(
    IVToken _collateralMarket,
    uint256 _collateralAmountSeed,
    IVToken _borrowedMarket,
    uint256 _borrowedAmountToFlashLoan,
    uint256 _minAmountOutAfterSwap,
    bytes calldata _swapData
) external

Parameters

Name	Type	Description
_collateralMarket	IVToken	The vToken market to supply collateral to
_collateralAmountSeed	uint256	Amount of collateral underlying the user provides
_borrowedMarket	IVToken	The vToken market to borrow from
_borrowedAmountToFlashLoan	uint256	Amount of borrowed asset to flash loan
_minAmountOutAfterSwap	uint256	Minimum collateral tokens expected from swap (slippage protection)
_swapData	bytes	Encoded swap data from Venus Swap API

Example

User has 1,000 USDC and wants 3x USDC exposure:

• Provide 1,000 USDC as collateral seed

• Flash loan 2,000 USDT

• Swap 2,000 USDT → ~2,000 USDC

• Supply 3,000 USDC as collateral

• Final: 3,000 USDC collateral, 2,000 USDT debt (plus fees)

Events

• LeverageEntered emitted on success

• DustTransferred emitted for residual collateral and borrowed tokens

Access Requirements

• User must have delegated to this contract via Comptroller.updateDelegate

Errors

• ZeroFlashLoanAmount if _borrowedAmountToFlashLoan is zero

• IdenticalMarkets if collateral and borrowed markets are the same

• MarketNotListed if either market is not listed in Comptroller

• VBNBNotSupported if either market is vBNB

• NotAnApprovedDelegate if user has not delegated to this contract

• AccrueInterestFailed if interest accrual fails on either market

• EnterMarketFailed if entering either market fails

• SlippageExceeded if swap output is below _minAmountOutAfterSwap

• TokenSwapCallFailed if swap execution reverts

• OperationCausesLiquidation if position becomes unsafe

---

enterLeverageFromBorrow

Enters a leveraged position by providing the borrowed asset as seed. Both seed and flash loan are swapped to collateral.

function enterLeverageFromBorrow(
    IVToken _collateralMarket,
    IVToken _borrowedMarket,
    uint256 _borrowedAmountSeed,
    uint256 _borrowedAmountToFlashLoan,
    uint256 _minAmountOutAfterSwap,
    bytes calldata _swapData
) external

Parameters

Name	Type	Description
_collateralMarket	IVToken	The vToken market to supply collateral to
_borrowedMarket	IVToken	The vToken market providing the seed and flash loan
_borrowedAmountSeed	uint256	Amount of borrowed asset the user provides as seed
_borrowedAmountToFlashLoan	uint256	Amount of borrowed asset to flash loan
_minAmountOutAfterSwap	uint256	Minimum collateral tokens expected from swap
_swapData	bytes	Encoded swap data (must account for seed + flash loan amount)

Example

User has 1 ETH and wants leveraged USDC exposure:

• Provide 1 ETH as seed

• Flash loan 2 ETH

• Swap 3 ETH → ~6,000 USDC

• Supply 6,000 USDC as collateral

• Final: 6,000 USDC collateral, 2 ETH debt (plus fees)

Events

• LeverageEnteredFromBorrow emitted on success

• DustTransferred emitted for residual tokens

Access Requirements

• User must have delegated to this contract

Errors

• ZeroFlashLoanAmount if _borrowedAmountToFlashLoan is zero

• MarketNotListed if either market is not listed in Comptroller

• VBNBNotSupported if either market is vBNB

• NotAnApprovedDelegate if user has not delegated to this contract

• AccrueInterestFailed if interest accrual fails on either market

• EnterMarketFailed if entering either market fails

• SlippageExceeded if swap output is below _minAmountOutAfterSwap

• TokenSwapCallFailed if swap execution reverts

• OperationCausesLiquidation if position becomes unsafe

---

exitSingleAssetLeverage

Closes or reduces a single-asset leveraged position. Flash loans the asset to repay debt, then redeems collateral to cover the flash loan.

function exitSingleAssetLeverage(
    IVToken _collateralMarket,
    uint256 _collateralAmountToFlashLoan
) external

Parameters

Name	Type	Description
_collateralMarket	IVToken	The vToken market for both collateral and debt
_collateralAmountToFlashLoan	uint256	Amount to flash loan for debt repayment

Example

User has 20 ETH collateral and 10 ETH debt:

• Flash loan 10 ETH

• Repay 10 ETH debt

• Redeem ~10 ETH (plus fees) from collateral

• Final: ~10 ETH collateral, 0 debt

Events

• SingleAssetLeverageExited emitted on success

• DustTransferred emitted for residual tokens

Access Requirements

• User must have delegated to this contract

Errors

• ZeroFlashLoanAmount if flash loan amount is zero

• MarketNotListed if market is not listed in Comptroller

• VBNBNotSupported if the market is vBNB

• NotAnApprovedDelegate if user has not delegated to this contract

• AccrueInterestFailed if interest accrual fails on the market

• InsufficientFundsToRepayFlashloan if redemption insufficient for repayment

• OperationCausesLiquidation if final position is unsafe

---

exitLeverage

Closes or reduces a cross-asset leveraged position. Flash loans borrowed asset to repay debt, redeems collateral, and swaps to cover the flash loan.

function exitLeverage(
    IVToken _collateralMarket,
    uint256 _collateralAmountToRedeemForSwap,
    IVToken _borrowedMarket,
    uint256 _borrowedAmountToFlashLoan,
    uint256 _minAmountOutAfterSwap,
    bytes calldata _swapData
) external

Parameters

Name	Type	Description
_collateralMarket	IVToken	The vToken market holding user's collateral
_collateralAmountToRedeemForSwap	uint256	Amount of collateral to redeem and swap
_borrowedMarket	IVToken	The vToken market where user has debt
_borrowedAmountToFlashLoan	uint256	Amount to flash loan for debt repayment
_minAmountOutAfterSwap	uint256	Minimum borrowed tokens expected from swap
_swapData	bytes	Encoded swap data

Example

User has 3,000 USDC collateral and 1 ETH debt:

• Flash loan 1 ETH

• Repay 1 ETH debt

• Redeem 2,000 USDC from collateral

• Swap 2,000 USDC → ~1 ETH (plus fees)

• Final: ~1,000 USDC collateral, 0 ETH debt

Events

• LeverageExited emitted on success

• DustTransferred emitted for residual tokens

Access Requirements

• User must have delegated to this contract

Errors

• ZeroFlashLoanAmount if flash loan amount is zero

• IdenticalMarkets if collateral and borrowed markets are the same

• MarketNotListed if either market is not listed in Comptroller

• VBNBNotSupported if either market is vBNB

• NotAnApprovedDelegate if user has not delegated to this contract

• AccrueInterestFailed if interest accrual fails on either market

• SlippageExceeded if swap output is below minimum

• InsufficientFundsToRepayFlashloan if swap output insufficient for repayment

• OperationCausesLiquidation if final position is unsafe

---

executeOperation

Flash loan callback invoked by the Comptroller. Routes execution to the appropriate handler based on operationType.

function executeOperation(
    IVToken[] calldata vTokens,
    uint256[] calldata amounts,
    uint256[] calldata premiums,
    address initiator,
    address onBehalf,
    bytes calldata param
) external override nonReentrant returns (bool success, uint256[] memory repayAmounts)

Parameters

Name	Type	Description
vTokens	IVToken[]	Array with the borrowed vToken market (single element)
amounts	uint256[]	Array with the borrowed underlying amount (single element)
premiums	uint256[]	Array with the flash loan fee amount (single element)
initiator	address	Address that initiated the flash loan (must be this contract)
onBehalf	address	User for whom debt will be opened
param	bytes	Encoded auxiliary data for the operation

Access Requirements

• Only callable by the Comptroller

Errors

• UnauthorizedExecutor if caller is not Comptroller

• InitiatorMismatch if initiator is not this contract

• OnBehalfMismatch if onBehalf does not match operationInitiator

• FlashLoanAssetOrAmountMismatch if arrays length is not 1

• InvalidExecuteOperation if operation type is unknown

Events

Event	Parameters	Description
SingleAssetLeverageEntered	user, collateralMarket, collateralAmountSeed, collateralAmountToFlashLoan	Single-asset leverage position opened
LeverageEntered	user, collateralMarket, collateralAmountSeed, borrowedMarket, borrowedAmountToFlashLoan	Cross-asset leverage position opened with collateral seed
LeverageEnteredFromBorrow	user, collateralMarket, borrowedMarket, borrowedAmountSeed, borrowedAmountToFlashLoan	Cross-asset leverage position opened with borrowed seed
LeverageExited	user, collateralMarket, collateralAmountToRedeemForSwap, borrowedMarket, borrowedAmountToFlashLoan	Cross-asset leverage position closed
SingleAssetLeverageExited	user, collateralMarket, collateralAmountToFlashLoan	Single-asset leverage position closed
DustTransferred	recipient, token, amount	Residual tokens transferred after operation

Security Considerations

Access Control

• Delegate Requirement: All operations verify the user has delegated to this contract via Comptroller.updateDelegate()

• Flash Loan Callback: executeOperation validates msg.sender is the Comptroller

• Initiator Validation: Callback verifies initiator == address(this) to prevent unauthorized triggers

• OnBehalf Validation: Callback verifies onBehalf == operationInitiator for user consistency

Reentrancy Protection

The executeOperation function is protected by OpenZeppelin's nonReentrant modifier, preventing reentrant calls during flash loan callback execution.

Slippage Protection

All swap operations accept a minAmountOutAfterSwap parameter. The transaction reverts with SlippageExceeded if the swap output falls below this threshold.

Account Safety

• Enter operations perform pre-checks to ensure the user is not already at liquidation risk

• All operations perform post-checks to verify the final position is healthy

• Exit operations skip pre-checks since reducing debt can only improve health

Dust Handling

After every operation, any residual token balances are transferred back to the user:

• Collateral dust → User

• Borrowed dust (all operations) → User

Deployment

See Deployed Contracts for current addresses.

Integration

For Users

1. Enable Delegation: Call Comptroller.updateDelegate(leverageStrategiesManagerAddress, true) to authorize the contract

2. Approve Tokens: Grant token spending approval to LeverageStrategiesManager for collateral tokens

3. Execute Operations: Call the appropriate entry function with parameters

For Developers

LeverageStrategiesManager exposes a clear interface for integration:

interface ILeverageStrategiesManager {
    function enterSingleAssetLeverage(
        IVToken _collateralMarket,
        uint256 _collateralAmountSeed,
        uint256 _collateralAmountToFlashLoan
    ) external;

    function enterLeverage(
        IVToken _collateralMarket,
        uint256 _collateralAmountSeed,
        IVToken _borrowedMarket,
        uint256 _borrowedAmountToFlashLoan,
        uint256 _minAmountOutAfterSwap,
        bytes calldata _swapData
    ) external;

    function exitSingleAssetLeverage(
        IVToken _collateralMarket,
        uint256 _collateralAmountToFlashLoan
    ) external;

    function exitLeverage(
        IVToken _collateralMarket,
        uint256 _collateralAmountToRedeemForSwap,
        IVToken _borrowedMarket,
        uint256 _borrowedAmountToFlashLoan,
        uint256 _minAmountOutAfterSwap,
        bytes calldata _swapData
    ) external;
}

Swap API Integration

Cross-asset operations (enterLeverage, enterLeverageFromBorrow, exitLeverage) require signed swap data from the Venus Swap API:

1. Request a swap quote from the API with source and destination tokens

2. Receive encoded multicall parameters with backend signature

3. Pass the signed _swapData to the entry function

Audits

LeverageStrategiesManager undergoes security audits before mainnet deployment. Audit reports are available in the venus-periphery repository.