Research Summary: Towards A first step to understand flash loan and its application in Defi Ecosystem

@Samuel94, on the 7th of September, some attackers stole about $370,000 from Avax through a flash loan attack. Again, today about $1.25 million was stolen from New Free DAO, a recent DeFi project. Much more money has been lost to flash loan attacks, but I picked on these two as they are the most recent cases.

DeFi platforms charge these little percentages in fees which I see as the only incentive for enabling flash loans on their platforms. Except you want to include generating trading activities as an added advantage. In fact, some platforms do not even charge a fee. So considering the losses incurred during flash loan attacks, is enabling flash loan functionality a good return on investment for these platforms?

Also, are there other gains or incentives that obligates them to provide the service? Are they just being “patriotic” to blockchain technology innovation?

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