🚧$BEAN loses $182m to a Flash Loan attack.
🧱What are Flash Loans? Is it a good thing that DeFi enables anyone to borrow $1B as an anon?
A reflective/thought thread by a fam of on-chain buidlers🧵(14-parts).

cc: @rleshner @tarunchitra @zxocw @im_manderson @pythianism 1\🧱Flash Loans are a building block concept that is idiosyncratic to #DeFi. Nowhere else in history before, could you have borrowed from your bank 🏦staggeringly large amounts for miniscule interest and a split second.

1\ What is the Holy Grail of #AMM Design?

Zero Impermanent Loss, 10x Capital Efficiency.

At @IntegralHQ we got it. The #defi magic is brought to you by a rare collaboration spanning from #harvard to @ethereum OGs. Made with care: 12,000 hrs R&D, 2 full audits. Launching soon. 2\ Price Discovery is an informational phenomenon.

Arbitrageurs race for profits for bringing fresh price information to @Uniswap through arb trades - an informed flow.

B/c Uniswap LPs already pay for this info (via "impermanent loss"), we want to avoid paying for it again!

1\ Q: "What would be the final form of AMMs?"
A: "One that eats other exchanges' liquidity."

We are building @IntegralHQ to be the last exchange.

When another exchange has better liquidity, we mirror it onto ourselves, til we have the world's best aggregate liquidity again. 2\ Our debut product will mirror 3x @binance spot market liquidity and instantly become the world's cheapest place to trade spot crypto, starting on @ethereum.