Flash loans as a capital boost tool

Quick Take

  • 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.
Along with the launch of the first DeFi protocols, on-chain arbitrage opportunities began to emerge. The number of such opportunities only increased due to the poor UX of first DEXs and high market volatility, when traders did not have time to cancel limit orders. Flash Boys 2.0 authors researched on-chain arbitrage in detail and concluded […]

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