Flash Loans
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What are flash loans?
Flash loans allow you to borrow any available amount of assets from a Moola Market liquidity pool without putting up any collateral as long as the liquidity borrowed plus a flash loan fee is returned to the pool 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 1 basis points (0.01%) and can be adjusted via governance.
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 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 in our Github repo.