What is a Flashloan?
Flash Loans revolutionize decentralized finance by allowing users to borrow substantial amounts of cryptocurrency without collateral—provided the loan is repaid within the same transaction. Introduced by Aave, this innovation unlocks liquidity for various strategies, turning anyone into a temporary "whale" regardless of their initial capital.
Top Flashloan Providers (2024):
| Platform | Tokens Available | Fee Structure |
|---|---|---|
| Aave | 22 | 0.09% |
| dYdX | 3 | Zero fee* |
| Uniswap V2 | 100+ | 0.3% |
👉 Note: dYdX's flashloan requires developer-level actions and isn't user-facing.
Why Use Flashloans for Arbitrage?
Arbitrage exploits price differences across markets. Traditional arbitrage demands heavy capital—flashloans eliminate this barrier. Popular use cases include:
- Cross-exchange trades (e.g., buying low on Uniswap, selling high on KyberSwap)
- Collateral swaps
- Debt restructuring
Pre-Arbitrage Checklist
- Identify opportunities with >0.09% profit margins (to cover Aave's fee)
- Fund your wallet with enough ETH for gas fees
Real-World Example:
- 20% rate difference between Uniswap V1 (1 DAI = 1.2411 sUSD) and Kyberswap (1 sUSD = 0.9927 DAI)
- Strategy: Buy sUSD cheaply on Uniswap, sell at premium on Kyberswap
Building Your Flashloan Arbitrage Combo
Follow this step-by-step workflow:
1. Structure the Transaction Flow
1. Borrow 100 DAI via Flashloan
2. Swap 100 DAI → 122.83649 sUSD (Uniswap V1)
3. Swap 122.83649 sUSD → 122.83429 DAI (Kyberswap)
4. Repay 100.09 DAI (loan + fee)
5. Keep 22.74429 DAI profit2. Platform-Specific Steps
- Uniswap V1 Cube: Set input (100 DAI) and output (122.83649 sUSD)
- Kyberswap Cube: Input slightly less than previous output (e.g., 122.83 sUSD) to accommodate rate fluctuations
Flashloan Setup:
- Borrow 100 DAI upfront
- Place repayment cube at the end
👉 Pro Tip: Always connect your wallet before executing and double-check gas fees!
FAQs
Q: Can I use flashloans without coding experience?
A: Absolutely! Platforms like Furucombo simplify complex DeFi strategies through visual workflows.
Q: How quickly must I repay a flashloan?
A: The entire borrow-repay cycle happens in one blockchain transaction (typically under 30 seconds).
Q: What’s the biggest risk in flashloan arbitrage?
A: Slippage—price changes between transaction steps can erase profits. Always account for buffer amounts.
Ready to Start?
With flashloans, you’re not just trading—you’re leveraging the full power of DeFi. 👉 Master advanced strategies today and turn market inefficiencies into profit streams.
Disclaimer: Arbitrage requires active opportunity hunting. Platforms provide tools but don’t guarantee profits.
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