A person made a $3 profit by Flash Loaning $200M from MakerDAO.
On Wednesday, an arbitrage bot used a flash loan to borrow $200 million worth of the stablecoin DAI from MakerDAO. After transaction fees, the bot made a profit of $3.24.
The bot was able to take advantage of MakerDAO’s ‘DssFlash’ contract, which allows users to borrow any amount of DAI without paying fees, according to crypto data provider Arkham Intelligence.
A flash loan is a type of loan that is received and paid back within a single block without any upfront collateral. In this case, the bot borrowed 200 million DAI tokens and supplied them to the Aave DAI market, borrowing $2,300 worth of wrapped ether (WETH) against it.
The WETH was then used to purchase Threshold Network (T) on Curve, which was then sold on Balancer through a series of single-block transactions.
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The total profit before fees was $33, but almost $30 was incurred in transaction and protocol fees, leaving a net profit of $3.24.
In the past, flash loans have been used in nefarious ways, with several flash loan exploits resulting in losses exceeding $10 million on decentralized finance (DeFi) platforms like Platypus and 0VIX.
