Collateralized Debt Position Opener

WHAT IT DOES

Collateralized Debt Position Opener is a DeFi tool that lets you open a new lending position in one transaction. Instead of manually depositing collateral and then borrowing debt in separate steps, this tool combines both actions into a single atomic operation. It reads your token balances, fetches current prices from oracles, calculates your borrowing power based on the protocol's liquidation threshold, and simulates the health factor of your new position before you commit. This helps you avoid opening a position that is immediately at risk of liquidation.

HOW TO USE

Connect your EVM wallet via the BGWallet bridge. Enter your lending pool address, collateral token, and debt token. Specify the amount of collateral you want to deposit and the amount you want to borrow. Choose your preferred interest rate mode (stable or variable). Click "Simulate Position" to preview your collateral value, borrow limit, projected health factor, and liquidation price. Review the simulation — if your health factor is above 1.5, your position is considered safe. Click "Open Position" to sign and broadcast the transaction. The tool handles approvals, deposit, and borrow in a single transaction, saving you gas and time.

TECHNICAL MECHANISM

The tool computes the borrow limit using the formula: collateral_value * liquidation_threshold. The health factor is calculated as borrow_limit / debt_value. It fetches token prices from the lending pool's oracle (e.g., Chainlink or the pool's own price feed) to ensure accuracy. When you execute, the tool encodes a multicall or sequential transaction that: (1) approves the collateral token if needed, (2) calls the pool's `deposit` function to supply collateral, and (3) calls the pool's `borrow` function to take the debt. The entire operation is atomic — if any step fails, the transaction reverts and no changes are made to your wallet. The tool also simulates the liquidation price, which is the collateral price at which your position would become eligible for liquidation.

WHAT IT CANNOT SEE

This tool cannot guarantee that your position will remain safe if collateral prices drop or utilization rates change after opening. The health factor and liquidation price are based on current prices and may change rapidly. The tool also cannot predict oracle updates, protocol changes, or sudden market movements that could affect your position. Always monitor your position regularly and consider setting a safety buffer — a health factor of 1.5 or higher is generally recommended. This tool is an aid for opening positions, not a guarantee against liquidation.

PLEASE NOTE

EVM chains only. This tool relies on the BGWallet connector and will not function on Solana, Tron, Starknet, SUI, TON, Aptos, Bitcoin, Cosmos, or XRP. The user is responsible for ensuring the supplied contract addresses are correct and that the lending protocol supports the specified operations. Always double-check the simulation results and consider the risks before opening a leveraged position.