I wrote lately how someone made over 1 million USD worth of ethereum exploiting flash loans in DeFi.
Yet people under post despite description of the attack kept asking what are those flash loans. Here is best explanation i can come out with.
You can loan any amount of ETH or assets as long as you pay it back within same block so within 3 transactions. You can take them without any collateral and can borrow ie 1 million USD.
Now since you have to pay them back right away they are not for humans but for ie trading bots that want to deposit but dont want to wait etc.
Yet someone made scripts/smart contracts that within same block, borrow, bet, manipulate market and payback. All within 1 transaction so he pays a fee of like 5-10 USD and get 1 million (took him 2 times as 1st was a try). Soon we will prolly see more exploints on those.
- Withdraw funds from an Account. Funds are sent from Solo to a specified address and the Account's balance is decremented.
- Calls a function specified by the ICallee interface through the context of an Account. Does not modify Account balances. An example of how this can be used is for setting expiration on the Expiry contract.
- Deposit funds into an Account. Funds are moved from the sender or an approved address to Solo, and the Account's balance is incremented.
Got it i hope.
I personally use other systems to make free finances ie take ethereum loans and invest in ETH lending products
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