3 ms·
The relevant question is whether the peg can be broken long enough for the loan to get margin called (by someone else exploiting the smartcontract to liquidate
by SilasX 5y ago
The relevant question is whether the peg can be broken long enough for the loan to get margin called (by someone else exploiting the smartcontract to liquidate collateral). Lasting for the length of a flash loan isn’t enough.
- arcticbull 5y agoI suppose that's true, but are you confident that's not possible? I'm not but as you can probably tell I'm pretty skeptical :)
- yokem55 5y agoFlash loans have to be paid back in the same block or everything the flash loan funded reverts. And to ensure this happens, it usually is all wrapped up on the same transaction bundle. But liquidations are only triggered on oracle updates. And those happen at fixed intervals (measured in time or price movement), and can only happen a block at a time, in blocks after the flash loan has been closed.