Question

Flash Loans allow users to borrow any available assets without putting up any collateral, as long as the liquidity is returned to the protocol within one block transaction.

• Show the frequency and volume of AAVE Flashloan use in 2022.
• Create a profile for a typical Flashloan user in 2022. Some of the metrics to look at could be wallet balance, transaction frequency, and dapps usage.

Typical flash loan user: 0xe14cedba68be35861dde3a599fba6a341b1a15af

• We considered this address as a typical flash loan user and examined its performance from various aspects.
• This user has received more than 23M USD in flash loans so far. The highest amount of loan received by this user in one day was about 3.9M USD.

What is Flash loan?

Flash Loan means a quick loan without the need for collateral. Smart contracts and DeFi platforms have created this type of loan. We all know that in order to get a loan, we need to provide collateral that guarantees the return of the loan to the lender. But Flash Loans are loans that we do not need to provide collateral and guarantee to receive, and the loan will be granted to us immediately after requesting it. This is a concept that does not exist in the traditional world.

The entire process of receiving and returning this loan is done in one transaction; That is, during one transaction, the loan is received and it will be repaid in the same transaction, along with the fee.

What Is Aave (AAVE)?

AAVE is an open source platform based on the Ethereum network that enables the borrowing and lending of various cryptocurrencies.

The format of the received loan can include from stablecoins to various types of altcoins. The AAVE protocol is managed by AAVE token holders.

Since usually the amount of liquidity in the financial market is higher than the amount of borrowing demand; Much of this capital and liquidity remains untapped, so AAVE has introduced "Flash loan" that does not require collateral.

Data Analysis

Examining the above charts shows:

• The largest number of flash loans were received by users in the third week of June. This week, more than 1200 flash loans were received by users. The total amount of flash loans received by users this week reaches more than 600M USD.
• In the second week of May, the number of user requests for flash loans was also high. (about 900 flash loans)
• The number of requests for flash loans in the fourth week of June was also low compared to other weeks.
• About 99% of the total number and total amount of flash loans are related to AAVE v2.
• The largest amount of flash loans received by users is related to USDC. On the other hand, the largest number of received flash loans is related to WETH, followed by USDC.
• In general, USDC, WBTC, DAI, WETH and USDT currencies are the most popular among users.

Examining the above charts shows:

• The maximum number of flash loans received by this user is 9 loans (May 10). The highest amount of flash loan received by the user is related to the same day and its amount is 7.7M USD.
• This user also had the largest amount of balance on February 10th (3.12M USD). Gradually, from this day onwards, the amount of this user's balance decreased.
• The most user activity after the AAVE platform is related to Sushiswap.
• The highest fee paid and the number of transactions recorded by this user are on May 10 and 11, respectively.

Conclusion

In this dashboard, in the first part, the frequency and volume of AAVE Flashloan use in 2022 was analyzed. In the next part, the performance of a typical flash loan user was also analyzed based on some metrics.

***The data in this dashboard is updated daily.***

Written by: Emanoel91

Twitter: https://twitter.com/Astiran91

thanks to: MetricsDAO, FlipsideCrypto

Methodology

In this dashboard, the following tables available in flipside crypto are used to extract data:

• flipside_prod_db.aave.flashloans have been used to extract data related to the volume and number of flash loans.
• Table flipside_prod_db.ethereum.erc20_balances has been used to extract data related to the balance of a typical flash loan user.
• Using table flipside_prod_db.ethereum.udm_events, typical flash loan user activities were analyzed in different fields.
• Table ethereum.core.fact_transactions was used to analyze the number of transactions and the amount of fees paid by the typical flash loan user.
• All the data that is reviewed is for the year 2022.