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Flash Loans
Here we explain about how flash loans work and how ARTH is able to provide flashloans
A flash loan allows a user to borrow
ARTH without the need for collateral. Since these loans are controlled by smart contracts which force a user to pay back the loan, the transaction will fail if the ARTH minted is not paid back in the same transaction.Flash loans allow users to borrow large sums of funds without having to have any collateral in hand.
Example: This is the first flash loan taken in
ARTH: https://bscscan.com/tx/0x7e272e37f143174fbdb1053ea8ee8ed918b82deebacd05c1b7f5527c864c735aThere are many use cases with flash loans. A few of them have been listed below.
- Perform arbitrage across various pairs without having any capital
- Open leveraged long positions on cryptocurrencies using
ARTH's lending mechanism
All flash loan contracts are controlled by the Governance contract which is governed by MAHA holders. Governance can decide to either:
- Pause the flash loan contract
- Change the fee that gets charged (which is currently set at 0.1%)
Visit the Github repository to view an example flash-loan. Use the following lender addresses below for the appropriate network.
View the ARTHFlashLoanExample.sol file for an example of how to create a flash-loan contract. The main logic to writing where a user can use the flash-loan funds is in the
onFlashLoan function in ARTHFlashLoanExample.sol#L28-L30. function onFlashLoan(
address who,
uint256 amount,
uint256 fee,
bytes calldata data
) external override returns (bytes32) {
require(msg.sender == address(lender), "not lender");
require(who == address(this), "not contract");
// Write your logic here
// make sure that this contract has a balance of (amount + fee) once you're done
// the (amount + fee) is burnt off for the contract to succeed.
// Once done, make sure to return this hash to let the lender know it's gone succesfully else the
// tx will revert
return keccak256("ARTHFlashMinter.onFlashLoan");
}
Last modified 1yr ago