top of page

Page dedicated to report analysis I usually run on different aspects of the DeFI ecosystem: its technical architecture and evolution, market overview, market players, from protocols to aggregators, their leverage mechanisms, and tokeconomics.


Page Legenda:

- DeFi: market overview

- DeFi: technical architecture

Flash Loans: overview

Flash Loans: overview

The leading lender protocol Aave defines Flash Loan in its documentation as: 


"Flash loans are a feature designed for developers, due to the technical knowledge required to execute one. Flash Loans allow you to borrow any available amount of assets without putting up any collateral, as long as the liquidity is returned to the protocol within one block transaction. To do a Flash Loan, you will need to build a contract that requests a Flash Loan. The contract will then need to execute the instructed steps and pay back the loan + interest and fees all within the same transaction."


The main Flash Loan (FL) providers are:

- Aave

- dYdX

- UniswapV2

- SushiSwaps


They provide methods to call in order to perform a FL, with Aave also having an user interface with limited functionality in order to perform FL.

Trading strategies that have been put in place via FL are:

- Arbitrages

- Flash Liquidations

- Collateral Swaps

- Market Manipulations

To have an idea of the daily dynamic of FL transactions in DeFi, I have queried the Aave V2 FlashLoan() method in Dune Analytics to show:

Flash_Loan: usd value AaveV2_FL: daily usd value of FL transactions by tokens

Flash_Loan: number of AaveV2_FL: daily number of FL transactions by tokens

1) Flash Loans
bottom of page