1/7
Flash loans became widely known a year ago, after the first bZx hack.
@TheBlockRes could not skip this topic, given the recent yDAI exploit with the largest use of flash loans yet.
I hope that you’re our Research subscriber and have access to it.
theblockcrypto.com/genesis/93740/…
Flash loans became widely known a year ago, after the first bZx hack.
@TheBlockRes could not skip this topic, given the recent yDAI exploit with the largest use of flash loans yet.
I hope that you’re our Research subscriber and have access to it.
theblockcrypto.com/genesis/93740/…
2/7
A flash loan’s main idea is that the pool that lends funds must receive them back together with fees at the end of the transaction.
Many people know that the concept was proposed by Marble, but few know that someone used it.
A flash loan’s main idea is that the pool that lends funds must receive them back together with fees at the end of the transaction.
Many people know that the concept was proposed by Marble, but few know that someone used it.
3/7
@dydxprotocol has supported flash loans since launch, although it was discovered only after the first bZx hack.
Flash loans are absolutely free to use, which is why the $43.6B flash loan volume.
The main borrower is InstaDApp, and tbh I find their use case amazing.
@dydxprotocol has supported flash loans since launch, although it was discovered only after the first bZx hack.
Flash loans are absolutely free to use, which is why the $43.6B flash loan volume.
The main borrower is InstaDApp, and tbh I find their use case amazing.
4/7
@AaveAave introduced flash loans as their innovative feature, however, with fees (0.09% right now).
Despite this, the yDAI exploiter caused a peak in flash loan volumes yesterday and left $1.5M in fees in the Aave v2 ETH pool.
@AaveAave introduced flash loans as their innovative feature, however, with fees (0.09% right now).
Despite this, the yDAI exploiter caused a peak in flash loan volumes yesterday and left $1.5M in fees in the Aave v2 ETH pool.
5/7
@Uniswap v2 flash swaps produced $7.5M fees for liquidity providers, albeit mainly through multiple DeFi attacks.
However, other popular use cases, such as general arbitrageurs and DPI and CHI arbitrageurs.
@Uniswap v2 flash swaps produced $7.5M fees for liquidity providers, albeit mainly through multiple DeFi attacks.
However, other popular use cases, such as general arbitrageurs and DPI and CHI arbitrageurs.
6/7
All ideas to stopping such functionality are meaningless.
Flash loans were not the real reason for every attack, quite the contrary.
They helped to find unusual attack vectors and some bugs right now, and not at the moment when protocols will have TVL 10-100 times more.
All ideas to stopping such functionality are meaningless.
Flash loans were not the real reason for every attack, quite the contrary.
They helped to find unusual attack vectors and some bugs right now, and not at the moment when protocols will have TVL 10-100 times more.
7/7
Thus, flash loans are the second tool in the toolboxes of the modern on-chain trader.
Probably someday, I will also write about the best methods for on-chain trade execution.
Let’s leave some alpha to the current on-chain traders, about whom I will definitely write.
Thus, flash loans are the second tool in the toolboxes of the modern on-chain trader.
Probably someday, I will also write about the best methods for on-chain trade execution.
Let’s leave some alpha to the current on-chain traders, about whom I will definitely write.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
