Flashloans Rise to $150 Million a Day

flashloans near half a million eth a day july 2020

450,000 eth, worth about $150 million, is now being borrowed every day without requiring any credit score, proof of income, collateral, or any paperwork at all. Instead through this very new invention of flashloans, the only requirement is that the entire amount borrowed can be paid in the same execution of all the actions. Leading to a rising demand for this new feature which in just about two weeks has gone from 50,000 eth being borrowed a day to 450,000 eth. That’s on just one dapp, Aave, which itself has seen a significant increase in assets under management at close to $400 million. Those assets are in a smart contract, which is basically code running on some 10,000 ethereum nodes across the globe. Other coders therefore can ‘talk’ to this smart contract and tell it they want say 1,000 eth to buy say some dai that is trading for $1…

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