Methodology

We are looking to see the popularity of flash loand on AAVE and what types of users using this service. To do this we will visualize the following metrics:

• daily AAVE flash loan count/volume
• AAVE flashloans by currency
• Flashloan user cohort analysis
• Flashloan user metrics

What is AAVE?

Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen. Currently AAVE is running on Ethereum and many other EVM compatable blockchains.

What are flashloans?

in a flash loan, funds are borrowed and returned within seconds and in a single transaction. The smart contract sets out the terms and performs instant trades on the borrower's behalf using the loaned capital. If the flash loan yields a profit, it is typically charged a fee of 0.09%.

Observations

Since the start of 2022 there has been over 15 Billion worth flash loans borrowed on AAVE making the protocol over 12 MIllion in fees. Most days there are between 10 and 30 flash loans on AAVE with a few periods of flashloans spikes to over 200 a few times. 

Observations

The top 5 tokens that are being borrowed on AAVE are DAI,USDT,USDC, WETH, and WBTC. These tokens make up over 95% of the tokens borrowed using AAVE flash loans. Overall USD stablecoins are the most common token to borrow in flash loans from AAVE.

Observations

In 2022 there were a little over 2,000 wallets using flash loans on Aave. These wallets have made an average of 3290 transactions per user. The top of contracts used by these users are Uniswapv2, WETH, and DAI.

Conclusion

In 2022 Flash Loans have been very popular for users of AAVE in 2022. with over 15 Billion in volume and over 12 Million in fees created so far this year. Mostly users are borrowing WETH, WBTC or Stablecoins. the users that are using flash loans are very active having higher than 3,000 transactions on average.  

Observations

Flash Loan users in 2022 have taken out up to 405 flash loans this year with most users taking out between 3 and 20 loans. Users that have taken out less than 1,000,000 worth of flash loans make up ~95% of the flash loan users, but make up less than 5% of the total loan volume in 2022.