What are flash loans in DeFi? -Breaking
Flash loan attacks are the most common type of DeFi Hacks. Because the technology is relatively new, there are many vulnerabilities that may not immediately be apparent. It might take skilled developers to find them.
Attacks on flash loansDeFi protocols, and their users can sufferHundreds of millions. As such, You must put in place safeguardsIt is important to make sure that protocols are clean and well-maintained.
To protect from slippage, decentralized pricing oracles
Tools for detecting possible attacks
Flash loan arbitrage
- Aave liquidity allows you to borrow assets
- Repay your Compound debt
- Collect collateral in Compound
- Dydx: Deposit collateral
- Mint debt on Dydx
- Aave returns liquidity
- Aave approves the borrower for a cash loan.
- To make a profit, the borrower sets up a set of logics that includes DEX purchases and sales.
- The loan is repaid by the borrower, who makes a profit and pays a fee of 0.09%.
- If you violate any of these conditions, your transaction will be rescinded and funds returned to the lender.
Transactions in a flash
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