LNDfi
  • Introduction to LNDfi
  • Core Advantages & Features
  • Money Markets
  • Fees & Yield
  • Interest Rate Mechanism
  • Oracles
  • Protocol Features
    • Supply
    • Borrow
    • Repay
    • Withdraw
    • Isolation Mode
    • Liquidation
  • Understanding Risks in LNdfi
    • Types of Risks
  • Technical
    • Flashloan's
  • Security
    • Audit & Security Overview
  • Resources
    • Brand Kit
    • Official Links
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  1. Technical

Flashloan's

Flash Loans: Powerful, Accessible, and User-Friendly

Flash loans are innovative financial tools that allow users to borrow assets without collateral, provided the borrowed liquidity is returned within the same blockchain transaction. Initially designed for developers, flash loans open up unique opportunities such as arbitrage, liquidation, and leveraged trading.

How Flash Loans Work

Flash loans require a solid understanding of the Ethereum Virtual Machine (EVM), programming, and smart contracts. They provide instant liquidity within a single transaction, with the requirement that the entire borrowed amount—plus a fee—is repaid before the transaction concludes.

Execution Flow of a Flash Loan

  1. Contract Request – Your contract requests a flash loan from the Pool, specifying the amount and reserve.

  2. Funds Transfer – The Pool transfers the requested funds to your contract and triggers executeOperation().

  3. Operation Execution – The contract performs its intended operations using the borrowed funds.

  4. Repayment – The contract approves the Pool to retrieve the loan amount plus fees, ensuring completion within the same block.

Expanding Accessibility: A User-Friendly Flash Loan Interface

To make flash loans accessible to all users, regardless of technical expertise, we are developing an intuitive, user-friendly interface. This interface will enable anyone—without prior coding or blockchain knowledge—to leverage flash loans efficiently. Our goal is to simplify the process by offering pre-built templates and guided execution flows, empowering a broader audience to take advantage of these advanced DeFi tools.

Applications of Flash Loans

  • Arbitrage – Profit from price discrepancies across different exchanges without upfront capital.

  • Position Liquidations – Facilitate liquidations without needing to front the repayment capital.

Flash Loan Fees

Flash loan fees start at 0.1% and can be adjusted through a Governance Vote. These fees contribute to the protocol’s stability and are distributed between liquidity providers and the treasury.

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Last updated 2 months ago