Flash Loans — an EOS blockchain platform for third party developers. It can be used to generate profit or to provide users with new features or services.
Contents:
- Brief description of the Flash Loans project
- Benefits of the Flash Loans
- Additional information about the ETH project
Brief description of the Flash Loans project
A loan, that has been borrowed and repaid in a single EOS transaction, is called a flash loan. Hence, you do not need any collateral for quick lending.
Flash credit properties:
- can be taken and redeemed in one transaction;
- no required collateral;
- the borrower must return the original loan amount + a small commission (0.09% currently);
- the transaction must be completed successfully, otherwise everything will be canceled and you only need to pay the gas fee (Ethereum must complete the transaction).
Flash loans are represented by the Aave project, which is a borrowing and lending protocol built on EOS. The Aave protocol allows you to make typical secured loans. Anyone can borrow and lend Ethereum and other tokens, using the Aave protocol.
In the case of Flash loans, anyone can borrow this liquidity, use it with other protocols (arbitrage, swap, trade, borrow or lend under different protocols, etc.) and repay in one transaction.
Benefits of the Flash Loans
Flash loans are an important innovation in the decentralized financial ecosystem. One of the huge benefits of term loans is that people no longer need collateral to access liquidity. There are hundreds of options for using Flash Credit.
Some of them:
| Arbitration | Thanks to Flash Credits, anyone can use a huge amount of liquidity to arbitrate between multiple decentralized exchanges. ArbitrageDao is a project that uses Aave Flash Credit for this purpose. |
| Debt refinancing | Let's say you borrowed under a compound protocol at 10%. But another protocol offers 5% debt. In this case, you can refinance your debt at 5% without collateral. |
Flash Credits are an integral part of the DeFi layout and enhance the usability of the entire ecosystem. A 0.09% commission is charged on the Flash Loan amount, 70% of which is redirected as additional income for contributors and 30% is shared, using the same 20% / 80% down payment model. There is also an additional fee for using transactions on the Ethereum blockchain, which depends on the state of the network and the complexity of the transactions.
Additional information about the ETH project
The site does not have White Paper and RoadMap, but there is information about the platform in a special section for beginners. You can familiarize yourself with the features of the projects and its advantages. The smart contract has not been audited. There is no referral system and other bonuses at the moment. Social networks have facebook and twitter. Subscribe to stay up to date with all news.