1·Get market parameters

Immutable parameters of Morpho Blue market 0x3a85...ee49 at 86% LLTV are read, pulling in its loan token, collateral token, oracle, and fixed fields as the source of this refinance.

2·Get market parameters

Parameters of the second market 0x09dc...631c at 86% LLTV are read the same way, standing in as the destination the position moves into.

3·Take

A witness hole opens for minimum_apr_delta, the rate gap the refinance must clear, supplied by the caller at execution time.

4·Take

Next minimum_health_factor is taken, the floor the moved position's health must hold after the move.

5·Take

Rounding out the inputs, liquidity_multiplier is taken to scale the destination market's required liquidity.

6·Use

Composing the Morpho Check Refinancing Constraints plug runs the rate, health, and liquidity tests over the two named markets and returns its pass flag and figures.

7·Predicate

Requiring the constraints plug's output in slot 5.0 equal 1 gates everything ahead, so the flow proceeds only when all refinancing checks pass.

8·Flash loan

A fee-free Morpho flash loan is taken in the debt amount from slot 5.1 and the loan token from slot 0.0.0, repaid within this transaction.

9·Repay

That borrowed amount is repaid as loan-token debt to the source market from the socket's balance.

10·Withdraw

Your collateral, the supply figure in slot 5.3, is withdrawn from the source market back to the socket in its collateral token.

11·Supply

The withdrawn amount is supplied to the destination market as collateral in the destination's collateral token.

12·Borrow

Loan asset equal to the debt figure is borrowed from the destination market against the newly supplied collateral, funding flash-loan repayment.

13·End block

The conditional branch opened at the constraints check is closed.

14·End block

The remaining open block is closed, ending the transaction.