Flash Loan

What is Flash Loan#

Simply put, you are allowed to pay on credit on DODO! When you buy tokens DODO, you can first get the tokens you want to buy, do anything you want with the tokens, and pay for them later.

How Does Flash Loan Work#

The figure above illustrates the four steps in a flash swap happening under the hood

Call the flashLoan function from the smart contract
Pool transfers the base tokens and quote tokens to the message sender (baseAmount or quoteAmount can equals to zero)
If the parameter data of the flashLoan function call is not null, the pool contract will call the DVMFlashLoanCall or DPPFlashLoanCall method.
After the DVMFlashLoanCall or DPPFlashLoanCall is executed, the contract will calculate whether the pool is losing money, if it loses, the transaction will fail directly.

    function flashLoan(
        uint256 baseAmount,
        uint256 quoteAmount,
        address assetTo,
        bytes calldata data
    ) external;

ps: DODO V2 flashLoan will preview a transaction that equalize the base and quote token to the initial state. using the preview transaction fee as the flashloan fee. No more fee will be charged in other situations.

Requires users implement the IDODOCallee interface.

interface IDODOCallee {
    function DVMSellShareCall(
        address payable assetTo,
        uint256,
        uint256 baseAmount,
        uint256 quoteAmount,
        bytes calldata
    ) external;

    function DPPFlashLoanCall(
        address sender,
        uint256 baseAmount,
        uint256 quoteAmount,
        bytes calldata data
    ) external;
}

How to use DODO Flash Loan#

Code sample: DODOFlashloan.sol

Some Thoughts on Flash Loan#

Once you have a deep understanding of flash swap, you will realize the superiority of the DeFi world over the centralized world. The composability of smart contracts has elevated the fund utilization of DeFi to an unprecedented level. Thanks to trustlessness, the cost of credit in DeFi is incredibly low. Once this financial system is integrated into the real world, its potential for improving our society and productivity will be truly boundless. The DODO team hopes that flash swap serves as a primer for DeFi builders and beginners alike to gain an appreciation for the power of DeFi.

note

Flash swap was inspired by dYdX and Uniswap. The DODO team genuinely appreciates and admires what these DeFi pioneers have done before us 👍