Cross-chain Flashloan
On the Demodyfi platform you will be able to utilize interoperable flashloans cross-chain.
Flash Loans makes it easy and instant to borrow without collateral once liquidity is returned to the pool within a single trading block. If this is not done, the entire transaction will revert and the actions taken up to that point will be effectively revoked. This guarantees the security of the funds in the pool.
DemodyFi Flash swaps allow you to withdraw up to the full reserves of any token on the platform and execute any logic at no upfront cost or locking up collateral for the borrowed tokens. If you are unable to meet either of the following conditions by the end of the transaction:
- Pay for the withdrawn tokens with the corresponding pair tokens.
- Return the withdrawn tokens along with a small fee.
The flash swap transaction will fail, and any other arbitrary execution involved in that transaction will be rolled back. This is possible because these flash swaps are atomic transactions.
Traditional flash swaps are possible from protocols like Uniswap and AAVE for Ethereum based tokens, but the Demodyfi protocol allows you to perform flash swaps with assets from other substrate as well as non-substrate chains. In addition, you need to pay a small protocol fee to use this feature which will be nominal.
Use Cases:
- 1.Arbitrage, examples of use include arbitrage, claiming (NFTs) rewards while they accrue in a pool.
- 2.Collateral Swap
Concept model 1.0
Last modified 1yr ago