Flash Loans

Beraborrow offers Flash Loans on all the assets it controls!

What is a Flash loan?

It is an uncollateralised/unsecured loan that is deposited and repaid within the same block. Meaning a user can theoretically borrow ♾️amount (or as much of that asset is available) as long as the loan + fees is repaid within the same block.

How does Beraborrow use flashloans?

Instead of looping multiple times to increase exposure, users can achieve leverage using a flash loan.

For example, Alice starts with $100 worth of collateral and wants 5x exposure. She flashloans $500 worth of the collateral and deposits it into Beraborrow, minting $400 worth of $NECT. Alice then sells the $NECT for collateral, giving her $500 ($400 from the sale plus her initial $100). This is enough to fully repay the flash loan.

As a result, Alice now has $500 worth of exposure to the collateral within Beraborrow but owes $400 worth of $NECT.

Nectar

Nectar ($NECT) can be flash-minted for more than hextillions of value. You repay the entire amount plus0.0001% of the volume flash-minted.

With this mechanic, $NECT aspires to be the most efficient arbitraging asset in Beraborrow's ecosystem.

Collateral Assets

It will depend on the type of collateral assets, since examples like $siBGT (staked $iBGT) will probably stay non-transferable, but except for this rare edge case all collateral types will be flashloanable.

The current fee for collateral assets is 0.001%over volume.

Dev Integration

You will find the flash-mint endpoint for Nectar in its token address, and for the specific collateral type it will be in itsDenManager contract.

The endpoints follows the IERC3156 standard:

function flashLoan(
    IERC3156FlashBorrower receiver,
    address token,
    uint256 amount,
    bytes calldata data
) external returns (bool) {
  ...
  require(
      receiver.onFlashLoan(msg.sender, token, amount, fee, data) == keccak256("ERC3156FlashBorrower.onFlashLoan"),
      "IERC3156: Callback failed"
  );
  ...
  /// @dev Remember to repay the amount + fee
}