Flashloans Surpass 100,000 ETH a Day For the First Time

Loans

More than 100,000 eth have been borrowed in flashloans for the first time on Aave, the decentralized finance (defi) platform.

A cool $19 million dai was borrowed today, accounting for 86,000 eth, and in eth itself, more than 20,000 has been borrowed this July 5th.

The remaining circa 20,000 eth equivalent was in other tokens and stablecoins, sending this overtaking of the 100,000 line to 120,000 eth today.

This has affected interest rates on the platform, reaching as much as 60% on July the 2nd.

It is usually around 6% or 7% with Aave providing the highest interest rate among these listed projects which don’t include the newer dapps of Curve, Balancer and the like.

Yet probably because of flashloans it seems to have temporary jumps as demand suddenly rises for supply.

Flashloans as you may know are a very new way of borrowing without providing any capital, credit rating score, income, or indeed anything at all.

There is only one condition that has to be satisfied: that the whole borrowed amount can be paid back in the same block.

Then the only other condition that has to be satisfied is coding skills, knowing how to Solidity or nowadays even pythonesque Vyper.

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When I came up with Ethereum, my first first thought was, 'Okay, this thing is too good to be true.' As it turned out, the core Ethereum idea was good - fundamentally, completely sound