Flashloan Dominance

    Regular Loans vs. Flashloans. Who is king?

    Introduction

    This dashboard maps out the statistics around regular aave loans obtained through borrows, and flashloans. The goal is to find out how dominating Flashloans are if they are even dominant. The definition of dominance here will depend on the metrics displayed below.

    Metrics

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    Let's start with frequencies. How frequently do users take regular loans and flashloans? Frequencies determine how much interest users have in a product. It is also an indicator of adoption and an idea of its barrier of entry.

    There have been 133.7k regular loans in comparison to 34.6k flashloans. This makes the ratio of flashloans to regular loans ~1:4.

    Next, let's breakdown the frequency distribution by market. Aave markets are token pools that facilitate lending and borrowing.

    USDC has the largest market followed by USDT, DAI and WETH in that order. The chart shows that borrowers rely more on flashloans than regular loans.

    Here, we will do the same for volume, how does regular loans and flashloans differ in volume?

    Total volume of flashloans amount to 6.7Billion USD as compared to 36.5Billion USD for regular loans. Representing a ratio of ~1:5.

    The next table shows how much volume on average make up regular loans and flashloans. We have to understand whether flashloans are being taken in larger amounts although in small frequencies.

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    The average amount being borrowed for regular loans are about 30% higher than that of flashloans. This means that regular loans do not only have high frequencies, but also higher value. There is no doubt that regular loans are more dominant in the aave ecosystem.

    Let's wrap up our dashboard with the top 10 users of flashloans by address. You can see that top 2 flashloan borrowers have borrowed over a billion USD which is quite huge.

    Findings & Conclusion

    While flashloans do see some activity and with large trade volumes, regular loans asert their dominance over flashloans with more frequencies. Moreover, the average regular loan amount is 30% larger than that of flashloans. The metrics presented in this dashboard shows that for every 5 aave user, 4 prefer regular loans. Regular aave borrow is King.