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Flash loan is just money that an Ethereum contract gives to a contract given in a callback function and expects the money back inside the same transaction with an interest. It's the first loan with no counterparty risk.

While I'm not a fan of how the Ethereum project and ETH token is managed, Solidity programming language brought real financancial innovations in trustless contracts.




> While I'm not a fan of how the Ethereum project and ETH token is managed

There is a real possibility of BTC finding home on Ethereum network in future. Recent advancements in cryptography make building of fully trust-less bridge between two possible, without requiring any changes on Bitcoin side. So possibility will be there. As for the need - there is no indication of Bitcoin moving towards solving time-bandit attacks. They will become a real issue once block reward falls. I'm skeptical that Bitcoin as a project is even capable of solving this problem. It would require additional emission of BTC, and "21M BTC meme" is way too strong.


Sure, we can talk about this in 100 years when BTC emission stops. Right now I prefer staying in BTC, but I think that the 2 big networks will grow together.

The real enemy is the closed fractional reserve banking system, I think practucally any open source cryptocurrency is better than that.


Check out some of the V3 crypto's. DOT, ATOM, ADA. Most of the OG founders who were building Ethereum realized sharding wasn't going to work and left to build the above three. I recommend to stay diversified among crypto this decade. And if you buy DOT on Kraken it gives 12% more DOT per year.


Pump it. There is very little difference between DOT and ETH 2.0. They are both sharded classical consensus. ATOM is also classical consensus and once the IBC will be up it will also resemble sharding. If you really want to look at something different in terms of consensus than Avalanche is something to check out. They claim they have introduced 3rd category in consensus protocols, but we will have to wait and see if it stands up to scrutiny and real life usage.


> Sure, we can talk about this in 100 years when BTC emission stops.

~89% of bitcoin have already been issued. Yes, they will continue to be emitted for a long time, but at a rate that is rapidly approaching inconsequential.


It’s funny that it’s too small for you, while others complain that it uses too much energy. I guess it can’t please everyone, but for me it’s perfect how it is right now.


How’s that different from leverage on forex trading?


Ask redditors on Wall street bets: when the lending party has counterparty risk, the rules of lending are opaque and can disappear in a second without a clear explanation.

Try asking $100M for a short time from any bank, I'll see how successful you are.


Exactly! The old ways of doing trading proved time and time again that the current system is opaque, biased and corrupt.


What is the liquidity of ETH lending market? 100M short term loan easy to get, what would be the interest?

Last time I checked defi usdt lending rates seemed to hover around 8-9%. Not that exciting when you consider insane gas fees and all the hassle managing the contracts.


Flash loans open and close that 100M in a single block. It is instant execution on the mining nodes.

Nanoseconds of computational time.

If the trade isn't possible then the transaction fails and it doesn't go through at all. You pay the transaction fee.


0.3% fee/trade for Uniswap. As it's an atomic transaction, yearly interest rate has no meaning actually.


Anybody can use it with ZERO collateral.




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