Guy Makes $5 Million From an 80,000 Ethereum Flashloan

5 million profit flashloan nov 2020

A skilled coder has just made $5 million worth of dai by flashloaning 80,000 eth, currently worth about $37 million. The return itself is substantial, more than 10%, but here no upfront capital was put forward as the sum was insta borrowed from the liquidity pool available on Aave. All that was needed was the acute eye to spot the arbitrage opportunity, the speed to code up the smart contract flashloan, and then the dollars to cover the network fees with the coder himself taking no risk as the code either executes all in one with the ability to instantly return the borrowed money and fees, or it doesn’t. In this case the coder appears to have spotted an arbitrage opportunity through stablecoins on Curve and a new thing called ValueMultiVaultBank. That seems to have mvUSD, presumably a dapp specific dollar stablecoin, with the coder depositing there, then exchanging on…

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