Aave: Flash Loans and Credit Delegation in Depth
summary
Aave v2 introduces multi-asset flash loans that pull ERC‑20 funds (WETH replaces native ETH), lets contracts execute within the pool, and can create debt instead of repay so a single transaction natively opens leveraged positions. The protocol already holds >$3.5B and issued ~ $1.8–2B in flash loans. Demo code on GitHub includes a fake arbitrage returning 9 bps (max 0.01 ETH) and a $200 bounty to exploit it. A migration executed via flash loan moves 540,000 USDC from v1 to v2 and leaves a v2 debt position, proving the flow works on mainnet.
AI-written summary · about
chapters (8)
- 0:00Introduction and setup
- 4:47Flash loan fundamentals
- 10:40Version 2 improvements
- 17:34Use cases for flash loans
- 27:02Migration and demo
- 35:52Q&A session
- 45:55Practical coding exercise
- 59:32Credit delegation overview
