Flash Boys | Arbitrage DAO
We are the flash boys: we have made the first flash loan ever on Blockchain 🔥
This post is about Flash Loan and we will introduce ArbitrageDAO | Flash Boys in details in another post.
In the world of trading, arbitrage is a strategy of taking advantage of price differences between markets to make a profit. Arbitrage opportunities exist in one form or another in all financial markets — crypto being no exception via its many different exchanges. Arbitrage helps reduce the price disparity of an asset in different markets even as it helps boost the liquidity.
We focus on decentralized exchanges running on the Ethereum blockchain that have Contract Fillable Liquidity (CFL). Examples of exchanges with CFL are Oasis, 0x relayers (open-orderbook only), Uniswap, Bancor, and Kyber. Exchanges with CFL allow traders to exploit arbitrage opportunities within one transaction to the Ethereum blockchain.
What are flash loans?
Flash loans are designed for developers to borrow in a flash without needing to put up any collateral. All of this is done in a single transaction (one block)! Devs can borrow from the Aave reserve pools on…
