Flash Loans are special! They sound crazy when you hear about them first time. You know why they sound crazy? Its because Flash Loans allow you to borrow, lets say 100 Million US Dollars without any collateral! There is no real world analogy to Flash Loans outside of Crypto ecosystem.
Let me give you a quick summary of what Flash Loans are, but I’m sure my summary is not going to do any justice how awesome they are. In simple words, Flash Loans are uncollateralised loans that allow anyone to borrow of any crypto asset, as long as the borrowed amount (and a fee) is returned before the end of the transaction.
So that means is you can borrow 100 millions of USDC (or any other currency) from apps like Aave and return it back in the same Ethereum transaction with a small fee. The small fee, referred as Premium, is around 0.09% on Aave. You can read more about use cases for Flash Loans over here.
Here is a dashboard we built with the help of Flipside Crypto data warehouse showcasing Flash Loans taken on Aave between Feb 24th 2021 and Aug 24th 2021.
The dashboard shows the following metrics
- Loan Amount: The total Amount of Flash Loans taken from Aave
- Premium: The amount of fee paid to Aave by Flash Boys! I mean those who took loan from Aave
- Initiators: Count of Flash Boys who took loan from Aave and returned it back.
- Targets: Defi Apps/Contract where these Flash Loans were used.
- Avg. Prem./ Day : Amount of fees earned by Aave on average daily.
- Avg. Loans / Day: Average number of Flash Loans taken per day
You can see total Flash Loans borrowed from Aave as well as by version v1 & v2 separately. Checkout the few top 5 day metrics at the bottom of reports to find what was the maximum amount of Flash Loans borrowed on Aave on a single day!