# Swap Execution

To illustrate Ouija's swap execution, let's consider the following example where Ouija has 500$ in it's liquidity pool:

1. Alice initiates a swap of $1000 worth of WETH for WBTC.
2. Ouija deposits WETH as collateral into the lending protocol.
3. The AMM borrows WBTC in return, returning it to Alice, effectively performing the swap.
4. The transaction provides Ouija with $850 of borrowing power (BP), while creating a $1000 debt in WBTC, resulting in a net BP loss of $150.

Despite having only a small amount of collateral, Ouija can successfully execute the swap due to its capital-efficient design and integration with lending protocols.
