Flash Loan -- Leveraged Yield Farm

Make use of Flash loan from DY/DX to earn more from Compound.

🔧 Project Diagram: - How it works

🔧 Deposit Diagram:

🔧 Withdraw Diagram:

Technology Stack & Tools

• Solidity (Writing Smart Contracts)
• Javascript (Testing)
• Hardhat (Development Framework)
• Ethers.js (Blockchain Interaction)
• Alchemy (Blockchain Connection)

• Metamask (Account Management)
• Compound Protocol (Supply or Borrow Tokens and Earn cTokens)
• dYdX Solo Margin (Flash Loan Provider)

Requirements For Initial Setup

• Install NodeJS. We recommend using the latest LTS (Long-Term-Support) version, and preferably installing NodeJS via NVM.
• Create an Alchemy account, you'll need to create an app for the Ethereum chain, on the mainnet network

Setting Up

1. Clone/Download the Repository

Make sure to enter the project directory before attempting to run the project related commands: cd flashloan_masterclass_hardhat

If the directory doesn't exist, you can execute pwd to find out your current path, and ls to see the files and folders available to you.

2. Install Dependencies:

npm install

3. Create and Setup .env

Before running any scripts, you'll want to create a .env file with the following values (see .env.example):

• ALCHEMY_API_KEY=""

4. Run tests:

npx hardhat test

Other Notes

• Other Flashloan Providers
  • DY/DX - Decentralized Exchange offering flashloans with cheap fees; that is used on this example code. Alternative Flashloan Providers that can be used or to investigate
  • Uniswap V2 Flashswaps
    • Example Uniswap FlashSwap can be found here
  • Aave Flashloan
  • Kollateral - A liquidity aggregator
• Augment your profits with trading bot - TradingBot Masterclass
• Uses of Flash loans
  • Arbitrage - use the vast funds to make profits from price discrepencies e.g on Exchange.
  • Leverage - increase exposure e.g earn more with Yield Farming on protocols like Compound.