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Wow this sent me down a rabbit hole. How are the transactions composed, with a smart contract/s, in combination with Dex API’s?
by SamBoogieNYC 6y ago
Wow this sent me down a rabbit hole.
How are the transactions composed, with a smart contract/s, in combination with Dex API’s?
- downandout 6y agoFlash loans are composed using a smart contract. So basically you create a smart contract that will call all the DEX/loan platform/other contract functions necessary to obtain the loan, carry out swaps and pay it back. You then deploy that contract. Then you would have a separate program running on your client machine to scan for market opportunities, and when it spots one, have that program send a transaction to your deployed smart contract to initiate the loan and set into action whatever logic you programmed into the smart contract that will yield a profit. Yes, it’s quite a rabbit hole indeed. It is hard to believe that something like this is even possible, let alone profitable, but it really can be. I have seen single flash loan transactions yield up to $46k in profits. That profit is irrevocably delivered back to you in a couple of seconds.
- SamBoogieNYC 6y agoYea it’s really quite wild and an exciting application of the ‘programmable money’ concept. Did some more reading. Thanks for the rundown.