No-Code Flashloan: Create a Flashloan with NO CODING

Flash loans are the new big trend in DeFi. With absolutely zero assets, flash loans allow you to borrow millions of dollars of Ether and ETH20 tokens. If you combine this with an arbitrage strategy between different decentralized exchanges like Kyber and Uniswap, you can generate a risk-free profit. However, flash loans are not easy. If you want to execute a flash loan, you need to code your own Solidity smart contract, integrate with a smart contract of a couple of DeFi protocols, and deploy your smart contracts to mainnet. If you are not a blockchain developer, it's gonna be a blocker. And even if you are a blockchain developer, you might just want to experiment easily with flash loans without wasting time coding your own smart contract. What if someone has created an easy-to-use interface to use flash loans with a custom arbitrage strategy? Well, with Furucombo, your dream came true. Furucombo is a no-code tool that allows you to create custom flash loans. And in this video, I'm going to show you how to use it to create your own flash loan and make a ton of risk-free money. But just before I explain you how to create your own no-code flash loans, be aware that all the no-code tools you will find are never as powerful and flexible as flash loans that you code yourself. So if you really want to be dangerous and become a true flash loan master, go register to my free flash loan training where I will teach you how to programmatically create flash loans. Let the demonstration begin! So this is the website of Furucombo. If you click on start, you can start building your flash loan. There are three parts. Here is where you specify the funds you initially provide. You don't have to provide anything. You can start your flash loan with absolutely nothing. Then on the right, that's where you can configure the different steps of your flash loan. And on the left, you can see the asset you will receive after the flash loan. Now we have nothing in our flash loan and we need to manually configure each step. And before we do this, we need to plan our flash loan. With a flash loan, you can do many different things. Swapping your collateral in a dive vault, liquidating an under collateralized loan on compound and get a liquidation reward. And I could continue to give you other examples. The possibilities are really endless. But in our case, we are going to focus on arbitrage. The basic idea with arbitrage is to buy low and sell high. So you find an EAS20 token that has a lower price on exchange A and higher price on exchange B. And after that, you just buy the token from exchange A and sell it in exchange B. And if you combine this with the leverage you get from a flash loan, you can make a substantial profit. So for our example, we will assume that there is a discrepancy in the price of DAI. So DAI is cheaper on Uniswap compared to Kyber. So our evil plan is to borrow Ether with the flash loan, buy DAI on Uniswap with the Ether that was borrowed, sell DAI on Kyber and get our initial ETH plus some profit. And finally reimburse the loan with the ETH we got back from Kyber. And now that we have a plan, we need to configure the different steps in the user interface of Ethereum Combo. The first step of our evil plan is to borrow ETH with a flash loan. This is important because it will provide a leverage that will make our arbitrage way more powerful. So we click on the plus sign here and we scroll down and we see the Aave section. So this is kind of on my screen, but you will see the flash loan button just below. And here you can select the currency that you want to borrow. So we're going to choose ETH and we're going to choose 100 ETH. Click on set and we have the two leg of our flash loan, the borrow and the reimbursement. And now we can do whatever we want with this Ether. How cool is that? And in the next step, we are going to use this Ether to buy DAI on Uniswap. Uniswap is a decentralized exchange for ERC20 tokens. Anybody can buy or sell ERC20 tokens in a decentralized way using the smart contract. So we will use the smart contract to buy DAI by using the ETH we borrowed from our flash loan. So in the interface, we're going to scroll down and here we're going to click on the plus sign. And in the Uniswap box, we're going to click on swap token and we're going to exchange ETH for DAI. So in output here, we select the DAI and we're going to specify the input amount for Ether. So 100 ETH because that's how much we borrowed on the flash loan. And we can see how much DAI we get as output here and click on set and that's it. And after we're going to reorder Uniswap to put it at the right place between the two legs of the flash loan. Okay, we are done with Uniswap. The next step is to convert the DAI back to ETH by using Kyber. Kyber, like Uniswap, is a decentralized exchange for ERC20 tokens. The way it works is different from Uniswap but as traders, we don't really care about this. All we care about is that we can sell our DAI using a spot contract. So in FuruCombo, we scroll down, click on plus to add a new step and here in KyberSwap, click on swap token. And so this time in input, we have DAI and in output, we will have Ether. And we need to specify the amount of DAI and so for that, we're going to copy past the output of Uniswap. Put it here. Okay and so that's how much Ether we'll get back. Click on set and after we're going to reorder this to put it just after Uniswap. So let's make sure that everything is in the right order. So first borrow money Flash Loan, then Uniswap, then KyberSwap. Okay we're good for Kyber and next step is to reimburse the Ether that we initially borrowed with the Flash Loan. All the steps we configure will happen in the same transaction but if you don't reimburse the Flash Loan, the whole transaction is going to fail. So we do have to reimburse the Flash Loan plus a fee that is charged by Aave, the team behind Flash Loans. So let's scroll down to the second leg of the Flash Loan and we can see that this is already configured to reimburse the 100 ETH that we initially borrowed. And after that, when your wallet is connected, so that's not the case of my wallet but otherwise, you can see this button send which is more visible. You click on it, you will see the pop-up notification of Metamask or of whatever wallet you're using, you confirm and your Flash Loan is going to be executed on mainnet. And after that, we have completed our Flash Loan arbitrage. But how much money did you make? Well it's time to count your money! Unfortunately, there isn't any profit calculator on Viracombo at the time of recording this video so you need to compute the profit yourself by adding the value of asset returned in output, subtracting the value of asset provided in input so that's nothing in our case and subtracting the gas cost so you will see this in Metamask just before confirming a transaction. So for our example, we actually won't profit at all, we will even lose money and that's because I haven't spotted an arbitrage opportunity and if I did, I wouldn't be recording this video but I But the point was to create a hypothetical scenario and give you an example. So Flash Loans seems amazing but is it too good to be true? Well, like many things in life, there are risks and we're going to talk about that. The first risk you face with a Flash Loan is slippage. Slippage means that the more liquidity you tap on an exchange, the worse your average price and we can see this in easily on Viracombo. So if we try to increase our Flash Loan a lot, we can see that we are getting a very little dive back from Kyber compared to what we initially invested. That's slippage in action. So in order to avoid this, you need to limit the size of the Flash Loan. So even if in theory you can borrow as much as you want with Flash Loans, there is actually a practical limit because of slippage. The other risk you face is delay execution. If the network is congested, it's possible that your transaction takes too long to execute and when it finally gets executed, the price discrepancy that you initially spotted no longer exists. In order to avoid this, you need to make sure that your gas fees are high enough especially when the network is congested. So as I said before in this video, even if no-code tools are super cool, no-code tools are limited. If you want to unlock the true power of Flash Loans, you need to learn how to code your own Flash Loans by using Solidity, the programming language of spot contracts on Ethereum. Another problem with no-code tools for Flash Loans is that they are too slow. You need to manually spot an arbitrage opportunity and quickly run your Flash Loan before the arbitrage opportunity disappears but you are competing with other people who do the same thing programmatically with scripts who scan arbitrage opportunities 24x7 and execute automatically Flash Loans super fast as soon as they detect an opportunity. If you want to be competitive, you need to do the same thing. And if you want to learn this and become a true Flash Loan master, register to my free Flash Loan training. I'll see you there!