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They accidentally repaid their loan early, which was explicitly allowed in the contract. The hedge funds were under no obligation to pay them back, since the mo
by colinmhayes 4y ago
They accidentally repaid their loan early, which was explicitly allowed in the contract. The hedge funds were under no obligation to pay them back, since the money was now rightfully theirs.
- sjtindell 4y agoAnd everything done in this case was in a smart contract. That’s the idea.
- colinmhayes 4y agoI don't think the smart contract explicitly said "there's this arbitrage opportunity available", but it's definitely a fine line.
- Dylan16807 4y agoThis kind of automated index fund seems pretty suggestive of arbitrage to me. And flash loan contracts are a bright neon sign saying "arbitrage opportunity!"
- not2b 4y agoYes, exactly. They sent the money to their creditors. Had they accidentally sent it to someone who they didn't owe money to, the courts would order the money to be returned.
- Dylan16807 4y agoThey repaid someone else's loan early.