Let’s talk about flash loans.
Uniswap V2 flash swaps also let you take tokens first, as long as you pay the equivalent amount before the same transaction ends, or return the tokens with a fee.
One thing that’s easy to overlook: flash loans aren’t vulnerabilities in themselves; in attacks, they’re just used to amplify the amount of capital available. The real issue is usually the price source or contract logic of the protocol being attacked.
When choosing a protocol, it’s worth checking where its prices come from: protocols that rely only on the spot price of a single DEX pool are vulnerable to flash-loan attacks.
Aave, the lending protocol behind $AAVE , offers flash loans.
#AAVE
Uniswap V2 flash swaps also let you take tokens first, as long as you pay the equivalent amount before the same transaction ends, or return the tokens with a fee.
One thing that’s easy to overlook: flash loans aren’t vulnerabilities in themselves; in attacks, they’re just used to amplify the amount of capital available. The real issue is usually the price source or contract logic of the protocol being attacked.
When choosing a protocol, it’s worth checking where its prices come from: protocols that rely only on the spot price of a single DEX pool are vulnerable to flash-loan attacks.
Aave, the lending protocol behind $AAVE , offers flash loans.
#AAVE