XycLoans

Inspiration

Flash loans are still a relatively new technology and developers are pioneering new use cases, but there already are well-known techniques that traders and developers use everyday to profit from market opportunities or save gas.

We took inspiration from our experience in using them on other chains and from AAVE's flash loans.

What it does

Flash loans allow for uncollateralized borrows without exposing lenders to the risk of losing their capital, which is possible thanks to a smart contract’s ability to revert a state-changing transaction in the event that a particular condition is or is not met. This allows a contract to lend money and revert the transaction if the borrower doesn’t return the money plus interest. Flash loans thus happen within one transaction, which will fail if the borrower can’t repay the loan.

How we built it

Specifics of this can be found in our litepaper.

Challenges we ran into

Given our (especially Tommaso's) experience with Soroban, we didn't run into major challenges, the main one would probably be fixed point math (which isn't implemented in the protocol yet, but we'll add it soon).

Accomplishments that we're proud of

Overall we're really excited about Flash Loans in general, and are very happy to be the first ones bringing them to Soroban!

Work starting from January 13th

We started working on this project a while ago, and in the hackathon's timeframe (13th Jan - now) we wrote the protocol's litepaper, and re-organized the code for better readability and maintainability.