In addition to flash loans, you should also know the new concepts of flash exchange and flash casting

The biggest feature of flash loan is to make Anyone can become extremely rich in an instant, but only a few people can use this moment to create considerable wealth for themselves. Flash loans allow a small number of people to "get rich" overnight, which may be the biggest reason for their attention. But you know what? In addition to lightning loans, this "lightning family" that allows users to skyrocket their assets in a short period of time also includes the lightning exchange proposed by Uniswap and the lightning casting proposed by Austin Williams.

This article introduces Flash Swap and Lightning Forge (Flash Mint), and make a simple comparison based on the data, so as to better understand the currently known "Flash Mint".

Flash Loan

As we all know, simply speaking, flash loan is to borrow a sufficient amount of funds from the loan agreement, And the funds will be returned in full within one block, and the profit will belong to the borrower. In 2020, hackers used flash loans to implement tools on many DeFi protocols, causing a large amount of financial losses. It can be said that talk about flash loans has changed color.

In terms of specific use, the lender of flash loan, such as decentralized Aave, a virtualized lending platform, charges 0.09% for flash loans. Conventional flash loan arbitrage requires at least three steps:

3) Arbitrage on another decentralized exchange to realize profit. At the same time, flash loans must be repaid with the assets lent. If you borrow Dai, you need to use Dai to repay the loan.

Flash Swap

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The difference between the flash swap and flash loan proposed by Uniswap is small. As stated in the Uniswap docs, there are no fixed fees for Lightning Swap, instead there are swap fees. Compared with flash loans, this can be regarded as a "free" loan, because the transaction fee has been deducted from the transaction, and there is no need to pay interest on the loan separately.

The last difference is that the Lightning Exchange can be repaid with any token in the exchange process. If you buy Dai with ETH in Lightning Exchange, you can use Dai or ETH to repay the loan in the end. This allows users to perform complex operations more easily.

Flash Mint

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According to Austin Williams, different from the above two, Flashforge first needs to introduce a new token fWETH, Flash-mintable token (FMTs) is to allow Flashforge Anyone can mint any number of new tokens in their account, as long as they burn the same amount of tokens from their account before a transaction closes.

Because I have no programming background, I can only speculate that Lightning Forge is an unlimited version of Lightning Loan that does not need to be limited by the token liquidity and number of tokens on the lending platform.

Compared with Flash Loan, Flash Forge has the following features: no liquidity pool endorsement is required; a maximum of 2 to the 256th power-1 token can be minted; only with Inherited fWETH's contract interaction (the reason for not being applied on a large scale); unlike Flash Loan, which puts technical risk on the lending platform, Flash Forge's technical risk is in the hands of fWETH holders.

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