Brief Primer
Flash loans are a unique feature of blockchain systems that allows users to borrow a large amount of cryptocurrency (typically ERC-20 assets) without providing any collateral. These loans are designed be taken and repaid within the same blockchain transaction.
The concept behind flash loans is made possible by the atomic nature of blockchain transactions. In Ethereum, transactions are either executed entirely or not at all. This allows users to borrow funds, perform actions (like arbitrage, liquidations, or self-liquidations), and repay the loan along with a small fee, all in a single transaction. If the transaction fails at any point or if the loan is not repaid, the entire transaction is reverted, ensuring that the lending protocol doesn't lose any funds.
Flash loans gained popularity with the emergence of DeFi platforms such as Aave and dYdX, which pioneered these services. They have enabled developers and traders to get instant access to liquidity.
Flash loans in Sablier
Sablier enables flash loans for specific ERC-20 assets approved by the protocol admin. It's important to note that no asset is available for flash loaning by default.
A percentage fee, known as the flash fee, is applied to every flash loan involving any ERC-20 asset and is managed by the protocol admin. The flash fee is currently set at 0.05%.
Our flash loan implementation adheres to the ERC-3156 specification. Detailed instructions on how to execute a flash loan can be found here.
Interested in enabling your asset for flash loaning? Reach out on Discord, or send an email to sales@sablier.com.
Supported assets
The following tables present the assets available for flash loaning.
Ethereum Mainnet
| Asset | Address |
|---|---|
| DAI | 0x6b175474e89094c44da98b954eedeac495271d0f |
| LUSD | 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0 |
| USDC | 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 |
| USDT | 0xdAC17F958D2ee523a2206206994597C13D831ec7 |
| WETH | 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2 |