EP 27: Flash Loans & Credit Delegation 101

Economics Design

English - October 08, 2020 06:00 - 33 minutes - 31 MB - ★★★★★ - 9 ratings
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Previous Episode: EP 26: Economics of Insurance Industry (1/2) | Nexus Mutual

Next Episode: EP 28: Economics of Nexus Mutual (2/2) $NXM

Crypto/DeFi is more than just the economics, mechanisms and code driving it. One of the other cool things is the innovation in business logic, systems and products. Being in the digital space opens up more opportunities to mitigate inefficiencies and create ways to increase value-add.

Today, we are joined by Victor Lee, the CEO of Bitcurate. In this episode, we will dive into flash loans and credit delegation, new innovations by Aave, made possible with the composability of DeFi dapps. Stacking one protocol on top of another, such innovative products can bring some real value-add to the system!

Topics we covered

What are flash loans?
Economic value-add of flash loans
Use-cases of flash loans
Are flash loans all risk-free? Where is the risk?
Flash loan as a trading strategy
Credit delegation — the benefits, the risks and the economics
Flash Loans beyond Ethereum
Flash Loans beyond DeFi — traditional finance and within crypto
What should one know to get started with flash loans?
Advice to economics designers when building ecosystems

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