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How a flash loan creates a profit for a flash loan user?

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    A flash loan creates profit through the following steps:

    Loan Acquisition: The user requests a flash loan from a DeFi platform like Aave.

    Arbitrage Execution: The borrowed funds are used to buy an asset at a lower price on one exchange and sell it at a higher price on another exchange.

    Loan Repayment: The initial loan amount plus any fees are repaid to the DeFi platform within the same transaction.

    Profit Realization: The difference between the buying and selling prices, after covering all fees, is the profit retained by the user.


    For example, if you borrow 10 ETH through a flash loan, use it to buy an underpriced asset on Exchange A, sell it for a higher price on Exchange B, and then repay the loan, the remaining funds after repaying the loan and fees are your profit. This entire process must be completed within one blockchain transaction to succeed.

    So it is the best and right time to     maximize your profits using flash loan arbitrage bot.
      June 20, 2024 6:03 AM PDT
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