BiFi FlashLoan Released

BiFi FlashLoan enable various leverage and arbitrage trading strategies

TL;DR

Why should I use BiFi FlashLoan?

Pay less fees if you are holding BiFi tokens.
Our smart contracts are safe and secure.
Get maximum profits while minimizing risk.

👉 Learn more about BiFi FlashLoan

Introduction

Since the lending platform Aave first issued its flash loans in January 2020, the growing demand of flash loans surged the protocol’s total value locked (TVL) to its new all-time highs in less than a month. Aave has now issued over $5 billion of flash loans (as of September 16, 2021). The loan volume is steadily increasing and it is expected that this growth trend will continue as flash loans make an impact in the DeFi ecosystem.

FlashLoans allow users to borrow any available amount of loans without a collateral. The borrowing and repayment occurs in the same transaction, and these uncollateralized loans need to be repaid within a single block, or it simply reverts.

Today, we are releasing BiFi FlashLoan for anyone with technical knowledge of smart contract development, allowing developers like you to maximize profit and explore the endless financial possibilities of DeFi without a huge amount of upfront capital.

Why should I use BiFi FlashLoan?

Discounted Fees ☑️

All flash loans require service fees.

The perks of using BiFi FlashLoan is that BiFi token holders will get preferential fee discounts to our early supporters of BiFi, depending on the amount of BiFi tokens the user is holding. BiFi FlashLoan is the only DApp that offers this unique fee discount — no other flash-loan based services offers this. For lower fees, you can now trade with instant leverage in a single transaction.

Details on BiFi FlashLoan Fees.

Low-Risk, High-Profit ☑️

Developers can create various leverage or arbitrage strategies using BiFi FlashLoan without any collateral or limits on their capital. There is potentially no risk in using the FlashLoan and you will only need to pay the necessary service fees.

BiFi FlashLoan Use Case: Loan Arbitrage

BiFi FlashLoan allow users to make loans without any collateral, as long as the borrowed amount is repaid within a single block transaction. If the user cannot repay the loan, the entire transaction is reverted and the user will only have to pay the necessary Ethereum and/or BSC gas fees, excluding the BiFi FlashLoan service fee.

We will demonstrate an example of loan arbitrage using BiFi FlashLoan in a hypothetical situation below:

User spots price discrepancies between two different platforms, where a profit can be realized.

Let’s say that Platform A sells 1 ETH for $10
Let’s say that Platform B sells 1 ETH for $1

2. The user develops a smart contract using the BiFi FlashLoan codes, and borrows 10 ETH from BiFi FlashLoan.

3. The concept of arbitrage is to simultaneously purchase and sell the same asset in two different markets in order to make profit from the listed asset’s price discrepancy. Hence, the user would sell his/her 10 ETH at Platform A (to make profit) and purchase 10 ETH at Platform B (to repay the initial borrowed ETH).

Since the user sold 10 ETH at Platform A for $10 each, the user has a total of $100.
Since the user purchased 10 ETH at Platform B for $1 each, the user used $10 of the $100 he/she has, thus profiting a total amount of $90.

4. The user would now repay the loan amount of 10 ETH back to BiFi FlashLoan, thus completing the borrowing and loan repayment all in a single transaction, while paying the service fees on BiFi FlashLoan.

5. Let’s say that the user fails to realize profit and fails to repay the borrowed loan. The transaction would cancel entirely and the trader would only have to pay the relevant network gas fees. The user does not have to pay for any FlashLoan service fees in this case.

Audited Smart Contracts ☑️

BiFi X, an automated application of BiFi FlashLoan, has undergone strict smart contract security audits from world-leading auditing firms. Both developers and non-developers can securely maximize profits for leverage and arbitrage trading using BiFi FlashLoan.

See BiFi X Smart Contract Audit Report

What is BiFi X?

FlashLoans itself are designed for developers as it requires some technical knowledge, but a few months back, BiFi team has introduced a new, automated application of flash loans called BiFi X to allow non-developer users to benefit from flash loans and democratize the power of DeFi lending for everyone.

To learn more about the flash-loan based automated leverage DeFi service BiFi X, click here.