Flash Loans

What are flash loans?

Flash loans allow you to borrow any available amount of assets from a Moola liquidity pool without putting up any collateral as long as the liquidity borrowed plus a flash loan fee is returned to the protocol within the same block. This feature is primarily intended for developers because of the technical knowledge required to execute them.

How much is the flash loan fee?

The flash loan fee is currently 35 basis points (0.35%) and can be adjusted via governance.

Who earns the flash loan fee?

The flash loan fee is split 70/30 between the pool of depositors for the asset that was borrowed and the Moola treasury.

Why would someone use a flash loan?

Flash loans allow you to temporarily access large amounts of capital. There are many use cases where this can be helpful such as;

• Liquidation hedging (e.g. set a minimum Health Factor and auto wind down a debt)

• Arbitrage trading price differences between exchanges like Ubeswap and Mento

• Swapping collateral w/o having to close your debt position

• Debt refinancing

• And much more...

Where can I find more information about building flash loan tools?

Right here in our Github repo.