Flash loans as a capital boost tool
February 5, 2021, 5:32AM EST · 10 min read
- Flash lending allows Ethereum users to get capital for any action as long as they return these tokens to the liquidity pool at the end of the transaction.
- The most beneficial flash loan provider is dYdX, which allows borrowers not to pay a fee for the use of funds.
- While Aave is most commonly associated with flash loans, it is used less frequently than its competitors and is likely only due to its easy integration.
- Uniswap v2 flash swaps produced $7.5M fees for liquidity providers due to multiple DeFi attacks.
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