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🎯 Flash Loan Use Cases: Arbitrage & More

Discover arbitrage, collateral swaps, and self-liquidation strategies

Borrow millions with no collateral in seconds

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💼 Flash Loan Use Cases

Flash loans enable capital-intensive DeFi strategies that were previously impossible for small players. Here are the three main use cases that drive billions in volume.

🎯 Use Case Explorer

Arbitrage Trading

Exploit price differences across exchanges instantly

How It Works:
  1. 1. Spot price difference: ETH is $2,000 on Uniswap, $2,050 on SushiSwap
  2. 2. Flash loan $100,000 USDC from Aave
  3. 3. Buy 50 ETH on Uniswap for $100,000
  4. 4. Sell 50 ETH on SushiSwap for $102,500
  5. 5. Repay $100,000 + $90 fee = $100,090
  6. 6. Keep $2,410 profit (minus gas)
Real World: Arbitrage bots scan DEXs 24/7, executing profitable trades within seconds. Competition is fierce - you need fast infrastructure.

📊 Arbitrage Profit Calculator

Calculate potential arbitrage profit. Adjust prices and see if the opportunity is worth executing.

$2000
$2050
$100,000
$250
Price Difference
$50 (2.50%)
Tokens Traded
50.00 ETH
Gross Profit
$2500.00
Before fees
Net Profit
$2160.00
2.160% profit
✓ Profitable Arbitrage
Flash Loan Fee: $90.00 (0.09%)
Gas Cost: $250
Total Costs: $340.00

📚 Other Use Cases

🔄 Debt Refinancing

Move debt from high-interest platform to lower-interest one without closing position. Flash loan repays old debt, new platform provides better rate.

🎯 Self-Liquidation

Before your position gets liquidated (and you lose bonus), liquidate yourself with flash loan. Keep liquidation bonus instead of giving it to others.

🏦 Vault Rebalancing

Yield aggregators use flash loans to rebalance between strategies instantly, maximizing APY without requiring user deposits/withdrawals.

🎲 NFT Liquidations

Liquidate NFT-backed loans on platforms like BendDAO. Flash loan to buy NFT at discount, sell on OpenSea, repay loan, keep profit.