What is the faster, if not fastest, way to make money today?
A fast growing financial product known as flash loan is moving the market and rewarding the crypto fanatics.
In case you have not heard about flash loan, this is how it typically works: On the blockchain, borrowers take collateral-free loans from lenders and use the proceeds for whatever they want. One of the most popular uses is to arbitrage discrepancies in coin prices on different exchanges. The key is that the loan, the trade and repayment are bundled into the same block of transactions, being processed and executed simultaneously.
The time from borrowing to returning a loan is practically instant. If the trade isn’t profitable, the borrower can reject the transaction, meaning that the lender gets their funds back in either case. As far as it is concerned, the lender always had the funds, whereas the user pays processing fees.
This is what the La Vitesse community is growing fast on, and this opportunity is what making all their yield farmers becoming a whale, a crypto industry nickname for large investors who are often able to move markets by themselves.
Since bursting into scene late 2020, the La Vitesse community size has grown over 300,000 in a matter of weeks. Whereas, while there’s no hard number on the current market size, one of the market biggest players, Aave, said it processed $2 billion of flash loans last year after starting up in January.
With Aave being one of the partners, La Vitesse is now accommodating over 500,000 crypto farmers already processed closed to $600 million of flash loans, and is hopeful of entering into the explosive phase where the flash loan is attracting more and more crypto fanatics. With this rate of attraction, it should not take La Vitesse much longer to be on par with the leaders of the flash loan industry.
Stani Kulechov, Aave’s London office CEO, says that all digital currency networks may end up providing flash loans at some point.
And according to industry analysts, this ongoing “democratization” of finance could result in a much more efficient and seamless cryptocurrency market.
So, do you have the answer to making money faster than an instant already?