Flash Loan Arbitrage | Aave Flash Loan Tutorial

Create an Aave Flash Loan arbitrage smart contract from scratch in this comprehensive flash loan tutorial. In this step-by-step DeFi tutorial we use the Aave v3 protocol to build a flash loan receiver smart contract. We'll then use a mock DEX contract to simulate a flash loan arbitrage.
Project repo:
github.com/jspruance/aave-fla...
Aave v3 Flash Loan documentation:
docs.aave.com/developers/guid...
docs.aave.com/developers/depl...
DAI-TestnetMintableERC20-Aave token (Goerli):
0xDF1742fE5b0bFc12331D8EAec6b478DfDbD31464
USDC-TestnetMintableERC20-Aave token(Goerli):
0xA2025B15a1757311bfD68cb14eaeFCc237AF5b43
AAVE PoolAddressProvider (Goerli):
0x5E52dEc931FFb32f609681B8438A51c675cc232d
Get Goerli test Eth here:
faucets.chain.link/
Get test ERC20 tokens here:
staging.aave.com/faucet/?mark...
Remix imports:
import {FlashLoanSimpleReceiverBase} from "github.com/aave/aave-v3-core/...";
import {IPoolAddressesProvider} from "github.com/aave/aave-v3-core/...";
import {IERC20} from "github.com/aave/aave-v3-core/...";
Dex.sol deployed (Goerli):
0xD6e8c479B6B62d8Ce985C0f686D39e96af9424df
Add liquidity:
USDC 1500
DAI 1500
Approve:
USDC 1000000000
DAI 1200000000000000000000
Request Loan - USDC (6 decimal):
0xA2025B15a1757311bfD68cb14eaeFCc237AF5b43,1000000000 // 1,000 USDC
0xA2025B15a1757311bfD68cb14eaeFCc237AF5b43,1000000 // 1 USDC

[@Abdulkadir-vb3vj]

I am halfway at watching the video, and I just want to thank you a lot for this tutorial. This is the best flashloan tutorial on youtube that I watched until now.

[@BlockExplorerMedia]

Thanks my friend - I appreciate that! : )

[@Ninjajitsu562]

why do i get error when i import files he says import from dpendencies? i copied the green and pink lines in git hub?

[@saheb1009]

@@BlockExplorerMedia can this be done in polygon chain?

[@onekycarscanners6002]

@@saheb1009 why are you scared of fees. Haha okay yeah it could work I guess just change the variables that represent matic from eth also router address.

[@ekwh84]

Bro please don't stop making content. Your tutorials are some of the most easily digestible Solidity Tutorials online hands down. Even when I run into issue it's easy to fix because the foundation of how you deliver the information is solid. I'm not a complete novice when it comes to solidity but I'm also not an expert. My point is these are good for people of all levels even those who want to understand the code just so they now a little about how smart contracts work. Please don't stop making these videos they're awesome. If you're not gonna do this here on youtube at least start a Udemy class or something. Key point being your work is needed in this space. Thank' You.

[@BlockExplorerMedia]

I really appreciate the kind words. I've had a bit of a lull but new video dropping tomorrow. Thanks for your support!

[@MrLawalker]

Yeah, this dude, absolutely, rocks.

[@bxmoreno1988]

@@BlockExplorerMedia brother can you mentor me I signed up to your Patreon and saw it had no videos 😂 But this video is gold literally

[@arieloxford6790]

I've been trying to find a tutorial this robust for about 2 years. Thank you!

[@Ninjajitsu562]

has this method worked for you

[@jrsantos1737]

hands down, the best ever flash loan arbitrage tutorial. thank you for detailed explanation.

[@zhaofour9833]

Clear and amazing. Better than any related videos which gonna charge lots of $

[@lunalogicradio3555]

the only tutorials where my adhd doesnt take over lolz,thank you

[@ItsElMago]

still works the code?

[@Dreadz530]

Just realized this video is also form the same creator as the website I was just reading an article on 30 min ago.. so dope that you have channel too and not just a bullshit one so you can say you do. This video is very well put together and you speak clearly and slowly it’s almost soothing haha 😂. Please keep up the content these kinds of quality videos will be helping people for years to come I’m subbing after the comment and clicking the bell haha

[@BlockExplorerMedia]

Thanks, I appreciate your kind words. Which website was that? I don't have one : ) I should have a new video dropping in the next day or so - thanks!

[@tamaraebiogosi9076]

yup the first tutorial to actually work!!! Damn you're good

[@comosaycomosah]

Gosh you guys have the best tutorials 💯 seriously been so helpful

[@onostv9175]

Thanks bro, best flashloan tutorial I have ever watched

[@DomedIsDoomed]

Great video, concise and exactly what you need to get started!

[@Ninjajitsu562]

why do i get error when i import files he says import from dpendencies? i copied the green and pink lines in git hub?

[@andriikliuiko7267]

thank you for your efforts in this video, know it really takes a lot of effort to make things end-to-end. Nice work!

[@Supercool7042]

THIS IS GREAT . .please make more tutorial on Defi ..

[@ivanlagade]

Wow.. You've nailed it. Thanks for sharing this educ. video.

[@josephdelgiorgio3997]

This is my favorite video of yours so far. Thanks!

[@josephdelgiorgio3997]

Just out of curiosity...If I were to run the V2 on mainnet, with my own USDC/DAI would it return similar profits? aka, press button=make me rich? Lol

[@BlockExplorerMedia]

Thanks appreciate it!!

[@BlockExplorerMedia]

Well the 'make me rich' part all comes down to what arbitrage opportunity you've found. In my example it's a little contrived, of course, but I've heard that people have made some serious bacon from flash loans. The potential is definitely there!

[@pneptune5851]

Thank you it worked, take care!

[@jerrywang3225]

This is a really great tutorial, I am looking forward to your new content on this channel. Thanks

[@LearnCrypto101]

You can check out my tutorials on flashloans if your intrested

[@deeparker6019]

This is much appreciated! Thank you 👍👍

[@Ninjajitsu562]

why do i get error when i import files he says import from dependencies? i copied the green and pink lines in git hub? and Reply

[@LORDUPAKO]

Thank you for the excellent tutorial. Does the test wallet require any funds prior to execution of the script?

[@danielmwangi3362]

Outstanding video💥🔥⚡⚡🔥💥

[@piccadilly0x]

This is brilliant, thank you

[@sihledlamini6971]

id like to get something straight , do we have to deposit the 1500 USDC and 1500 DAI ($3000) from our own personal metamask wallet ? Or these funds comes from the test tokens faucet?

[@PakluPapito]

Can you execute an operation with a CEX like Binance using an API once you have taken a flash loan or are we just limited to DEXs

[@CryptoWizards]

Excellent video!

[@Sianae]

Best explanation ever on executing a flashloan in KZbin by the way Did you recieved usdc in metamask wallet end of it ??? Please reply I'm eagerly waiting for you reply 😊

[@antonytoaquiza187]

As someone who doesn't know anything about programming this looks titanically impossible, well this is going to be a long ride

[@abinashburman4622]

I have a question, did u take arbitrary dexRate? If yes then is it possible to set arbitrary dexRate in mainnet ???

[@MrMike44v]

Great tutorial, now i was wondering if you can make it with DODO or DYDX

[@luce36]

Shouldnt we need to use some thing like chainlink to get pricefeeds to calculate DexA rate and DexB rate

[@lucaahrenbeck9081]

Great video, can i also use a bigger Flash loan of like 100k or 1mil and make more profit?

[@samora00]

Is it possible to configure for mainnet? I'm trying to implement flashloan and abitration in V2, but it's returning zero in getBalance and zero after executing the executeOperation() function

[@animeshkumar688]

I can't able to install Redhat in my windows. Can you please let me know is there any devices configuration is needed for deployment of Flashloans or I can do it in windows

[@user-qf4rz7xp1f]

very good!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@SnapDragon6101]

Do i need to write that smart contract to do flash loan arbitrage on Aave?

[@randyseff9252]

Great video, thanks one million. Going to try it and add another comment. Peace out fam

[@daniel7007]

AWESOME!!!

[@laurennoyb539]

Are there any good videos on how to code this kind of thing? I haven't coded in almost 30yrs.

[@chandanmaka5498]

Amazing video

[@mrshephu]

thanks for this dude

[@BlockExplorerMedia]

No problemo!

[@michaelraasch5496]

This is a top shelf video. Thanks man.

[@dogmaticent]

Can I use this for the balancer protocol ? Please I will appreciate your help on this

[@snehamandal5376]

sir can't we perform arbitrage on test net directly without using the dex contract??

[@bhilder]

thanks for the video. Quick question. What vscode extension do you use / settings for solidity highlighting. Thanks

[@BlockExplorerMedia]

I'm using the Solidity VC plugin by Juan Blanco which is great (using that specifically in this video). I have also used the Hardhat Solidity plugin. Prettier for formatting - you have to enable 'format on save' in VC settings and also ensure a formatter is set for Solidity.

[@bhilder]

@@BlockExplorerMedia thanks bro, big help

[@Silvervalist]

Super nice tutorial! Very pleasant. I have 2 questions: 1. For Add liquidity, I see 1,500 USDC while the Flashloan is 1,000 USDC. Is adding 1,000 as liquidity possible? What upper security margin should we consider in percentage? 2. For Approve, i see 1,200 DAI (1200000000000000000000) while USDC is 1,000. Why 1200 DAI?

[@gabrielgomes5551]

great stuff

[@Hash01011]

This was a brilliant tutorial explaining from scratch how use flash loans. Can u make video on flashbots and reentrancy hacks too

[@omega3fatass61]

lmao

[@quantaraum]

how did you get used on goerli? I can't find a goerli faucet for usdc

[@hashimnaushahi]

Thank you so much for creating and sharing this amazing tutorial video! Quick question... Do you have a video or could you create video which shows how to create this development setup for people who never coded anything before but still want to follow this tutorial step by step? I myself am not a developer and I know such a video would be really helpful for me.

[@omega3fatass61]

imo you really have to learn at least some basic solidity and study how transactions happen under the hood (what you're interacting with in order to do this) to fully understand and get the maximum benefit from using stuff like this.

[@CyberDTech]

I can help with that.

[@gilliangertse4796]

Hi. Is it possible to fund the contract with less than 1500? If so, what is the minimum?

[@aaronliruns]

Great tutorial! One question though: why can't we use the 1000 USDC borrowed from Aave for the DEX transcations but have to deposit another 1000 USDC for liquidity? The borrowing and arbitraging actions seem to be two separate transcations in the example?

[@kwayekant]

The inital deposit is the collateral fees. In case you can't afford to pay back the amount borrowed. Nothing is free

[@Samsonit50]

But your supposed to be able to borrow without collateral! This is how flash loans are spoken about 🤣

[@sometimesalways1259]

token's address faucet different with token's address borrow and repay such as DAI or USDC, how can I fix it?

[@pfaq]

I made an cross exchange arbitrage bot with flash loan. What no one tells you, is that miners who land the block have control over the transactions that will go on the block. So they can manipulate who will take the arbitrage oportunities.

[@JS-jq8pu]

any tips to start creating a cross exchange arbitrage bot with flashloans?

[@pfaq]

@@JS-jq8pu there's no shortcuts, you can look for degenbot to have some idea if you understand python. the concept is basically keep track of current reservers of a pair and calculate the future by filtering pending transactions on the blockchain> You will also need code in solidity, there's no way to run (but is not as hard as it looks, honestly is the easiest part). I have nothing linked with degenbot, it's just the only arbitrage real content i ever saw in the internet, and i still not use it, i made all my stuff. It's a lot of work (for real, there's no limit to upgrade), as more exchanges you implement more opportunities and also more profitable each opportunity will be, so it's kinda exponential. I don't know what more i can tell you, ask me a more specific question if u want. Currently im making just few dollars a day, probably an average of 5-6. But is increasing as i upgrade my code. January was few cents a day

[@LOC2210]

How profit did you get? there are still some opportunities on Market Now?

[@doc.greenthumb]

This tutorial was really helpful! The only issue I had was that the USDC I obtained using Aave's faucet had a different contract address. Is there a way I can supply the DEX with the USDC using the address that Aave expects? I apologize for my poor English. :(

[@_SleekGeek]

cc :waiting for the reply too... thanks in advance . for more context: ## DAI-TestnetMintableERC20-Aave token (Goerli): your video Aave's faucet addressess - 0xDF1742fE5b0bFc12331D8EAec6b478DfDbD31464 ~ the new Aave's faucet contract addresses - ` 0x75Ab5AB1Eef154C0352Fc31D2428Cef80C7F8B33 ` ## USDC-TestnetMintableERC20-Aave token(Goerli): your video Aave's faucet addresses - 0xA2025B15a1757311bfD68cb14eaeFCc237AF5b43 ~ the new Aave's faucet contract addresses -` 0x9FD21bE27A2B059a288229361E2fA632D8D2d074 `

[@saheb1009]

Did u get help?

[@jm7990]

Use v3 of the USDC faucet token, I was using v2 and it was giving me gas failure errors

[@praghav1988]

Did you tried using on Mainet and did it worked ??

[@wenrui2554]

Hi how do i populate the infura goreli endpoint

[@WesleySouza-bm3ee]

Can I use the bsc network?

[@giancarlofrigerio5352]

Hi! Thanks a lot fpr the video!! Can you help me write the code to connect the bot to real exchanges please?

[@shaikazaruddin45]

What is the initial amount should have in wallet to do this complete project

[@jusquaddy5568]

how would i make the funds go back into my wallet at the end of the arbitrage ?

[@Fansuri85]

What a great tutorial. I am totally newbie on this but your step-by-step guide helped a lot. But I did receive this message "'insufficient funds for intrinsic transaction cost'", and I am wondering, what's the minimum ETH I should deposit? I just created a totally new wallet in Metamask, but not sure how much ETH should I transfer or depo, just for this tutorial purpose.

[@Fansuri85]

Just found out that we actually need some faucet goerliETH for the transaction fee to deploy the fast loan contract. I thought we just need the faucet USDC only for testing. Thanks again for the tutorial

[@sherpya]

@@Fansuri85 yes you always need native coin for the gas fee

[@bakhshizade]

​@@Fansuri85have you been successful using this method?

[@user-pv7xk9zr8d]

hello, i tried this on my vscode but am having issues deploying it

[@aluranarveez9021]

Thanks lot

[@bersmizaev307]

My friend, thank you very much for this tutorial)) I have one small problem which I can not deal with. In 12:03 you had a problem in second line, but after 2 seconds (on the next shot) this problem doesn't exist. Please tell me what have you done with it ? I will really appreciate it if you help me.

[@saheb1009]

Did you get the help?

[@skgroupofficial6686]

@Block Explorer I am completely happy with the clear explanation given in the video. But I have a question, The amount you have deposited for liquidity 1500 USDC and 1500 DAI, do we need to deposit from our end?. I am from India and I feel the amount is more expensive to deposit. Please help me with the query.

[@antonstauer6421]

bro thats testnet dai and usdc, doesnt cost u anything

[@abulaizalaiz5993]

.

[@roxanabraescu6180]

Hi, great video. I want to ask is there a way to code a flashloan to take arbitrage from example binance to kucoin or is there a different name that I'm not familiar with for this example

[@hugogonzalez1749]

Yes there is. You have to grab the Binance contracts and look for their liquidity pool factory. Import the factory's interface as well as the liquidity pool's. Repeat for kukoin. On the backend you'll need to subscribe to both of their apis and query quotes for certain pairs. I recommend monitoring stable coins to make your like easier. If you use polygon, I highly recommend to use dydx or equalizer flashloans as they charge 0% fees will make million dollar trades viable. Anyways good luck

[@CyberDTech]

yes there is.

[@user-br9ey1be6i]

Very helpful video, thank you bro. Just a noob question though. The 10% discount for the DAI, I assume it depends on the price of DAI right? I mean we can't enforce the 10% discount on DAI, it just depends on what the DAI's price at the time we want to arbritage them? So the 10% is purely for tutorial purposes not the real situation? Thank you again for the great video.

[@BlockExplorerMedia]

Yes, the 10% is just for tutorial purposes so I can have a controlled way to demonstrate how an arbitrage would work. In the wild, you'd have to find a real arbitrage opportunity by comparing token values across different DeFi protocols or DEXes.

[@user-br9ey1be6i]

@@BlockExplorerMedia Got it. Thank you.

[@cryptoji1303]

Thanks mate its easy to understand and good intro to flash loan arb, Can we automate this, so that whenever it finds a difference in price it will execute...

[@CyberDTech]

yes we can

[@samuelnqai6037]

hi block explorer can i use it on mainnet

[@126Natethegreat]

Infinite money glitch. Jk, loved the tutorial!

[@BlockExplorerMedia]

I'm still looking for that glitch ; ) thanks!

[@realentertainers7655]

hi, please can you code for arbitrage only without the flashloan?

[@krissradev6708]

can i use python instead of js? or it will be slow

[@leomartinez6667]

Thank you so much for this video! Question. I am getting an error that says 'UNPREDICTABLE_GAS_LIMIT'. Do you know why this may be happening? Any help would be appreciated

[@leomartinez6667]

Fixed it. Was using the wrong endpoint...

[@BlockExplorerMedia]

Cool. I ran into the same error when I was building it the first time before video. It was just an error in my code so that err message seems to be pretty vague.

[@ramyachalla5306]

@@leomartinez6667 could you please elaborate how you fixed this?

[@jims7089]

This happened to me too. I hadn't visited the aave faucet and got the test Dai and USDC. Once I'd done this, I didn't get the error and the contract deployed successfully.

[@rajmandaliya942]

@@leomartinez6667 How do you set end point? Any syntax?

[@cryptobambino4401]

I have no idea why but the usdc doesn’t go to the Aave contract address, even though it does go to USDC contract address and it doesn’t let me take the flash loan

[@jm7990]

Use v3 of the USDC faucet token, I was using v2 and it was giving me gas failure errors

[@baronsonics]

address private dexContractAddress = in the flasloanarbitrage.sol is self deployed test contract? Or are we using the address in the video

[@Money_Science]

Hi can we deploy mev on unisawap borrowed eth from ave

[@AllJokesAsideBenKirby]

Will this work on Polygon network?

[@gavan2410]

Considering the ETH gas fees, is it possible to make any money at all doing this??

[@ShimoriUta77]

For real, I think not.

[@funnycartoon6235]

sir, can you make eth frontrunning smart contract?

[@jordanwhitfield8429]

quick question did the 110 DAi go to the wallet?

[@BlockExplorerMedia]

No that wasn't really the intention in this video - the flash loan was just from smart contract to Aave and back. There is a withdraw function in the contract though were the wallet owner could ultimately withdraw the funds from, after the completion of the flash loan. But yes, that does work. If you did want the funds to go back to the wallet automatically, you could implement a transfer from smart contract to wallet at the conclusion of the flash loan.

[@armaniallie8547]

Goerli testnet is deprecated. Is there a dex.sol anybody has for Sepoli with liquidity?

[@JackBNimbletradez]

Undeclared identifier line 39 column 5. Pool variable is undeclared. How do I fix?

[@pokiito9140]

Thanks for the video, you will forever remain the best, I appreciate, please i have a small issue when i run the code that will deploy the contract, i always get an error saying “flashLoan.deployed is not a function Please help me on how to solve the issue, thanks so much

[@cybertrade7908]

I get the same issue on deployment: "flashLoan.deployed is not a function" - any ideas what is causing that 'revert'?

[@hazelcham3le0n1]

This is fucking amazing

[@lgprabanjan7560]

bro can i excecute on this in mainnet and earn money bro will it work now

[@royanhilmy5446]

i cant inherit from FlashLoanSimpleReceiverBase .. it even didnt show on emmet

[@evansfaso9715]

Is this a testnet transaction or mainnet

[@ABCDEFGH-or2eb]

5:53 How come you’re not getting errors when trying to install Hardhat?

[@heldersantos4935]

Hello, thanks for tutorial. im getting the following error: "NotImplementedError: Method 'HardhatEthersProvider.resolveName' is not implemented" when i try to deployFlashloan.js (following minute 27:40 from video. Anyone know what is the problem?

[@unfortunately3435]

Were did the profit go ? U showed it via the get balance but not the wallet itself can u explain it to me?

[@sacredsoundsmeditation]

The profit wouldn't go into your wallet until you call the withdraw function which wasn't shown in the tutorial. You have to withdraw the profits into your wallet or be able to write a function into the contract that automatically withdraws the profits for you.

[@user-wk5rn9lv5m]

@@sacredsoundsmeditation can u send me one?

[@jm7990]

use the function withdraw() that is in the FlashLoan contract. Probably a button on Remix.

[@stanislav5262]

Why was it so fast at taking a loan then buying dai and then selling it for usdc? Usually currency rates do not move that quickly... Can you show a real example with some real money and real dex?

[@jakerich6531]

No more getting scammed for me thank you thank you thank you!

[@bitsbytes5069]

dont get the sol to compile in remix. those imports are not working it seems 3 parse errors

[@nathangandawa3034]

Hey, can this be done in BSC?

[@TheGaneshshow]

Hi sir, @31.32 seconds Why we should send USDC to contract? Thank you sir.

[@BlockExplorerMedia]

There is a small fee that Aave charges for flash loans (currently 0.09%) so we need to have at least that amount in the contract to cover the fee or else the transaction will be reverted.

[@BlockExplorerMedia]

Needs to be covered either by initial deposit or successful arbitrage.

[@TheGaneshshow]

@@BlockExplorerMedia Got it. Thank you very much sir.

[@ashishjanghel9340]

@@BlockExplorerMedia Since we are gaining profit at the end of the transaction but as i checked the same amount of USDC is also getting drained from the Dex contract...that means eventually we are earning zero ??? Can you please explain sir whats happenning......

[@mahto9329]

You're explaining it in an awsome way, but i still managed to get confused 😅 which private key should we put in the env file ? The deployer's private key??! Also what endpoint can I use to interact with polygon main net? 🤔

[@praghav1988]

Hey did you got any result for this! Even I am stuck hear

[@mahto9329]

@@praghav1988 I think that the private key and endpoint are only used in the local testing environment (locally simulated blockchain) and that when really deploying the contract to a testnet or a main net we won't need them as the browser wallet will handle those, normally.. Not 100% sure though.. it doesn't make sense to give a private key of a real wallet while we will do all the approvals and signing manually through metamask while using the contract.. Metamask will handle the rpc endpoint too.. Plus the env file won't be deployed with the contract anyway..

[@mahto9329]

@@praghav1988 anyway it should be the private key of the deployer address, a fake wallet for hardhat to simulate signing...

[@BlockExplorerMedia]

Yes, it's the private key for the account that you want to use to deploy the smart contract. You can find the Polygon mainnet endpoint in your Infura account under dashboard > endpoints. It should look like this: polygon-mainnet.infura.io/v3/{API_KEY}

[@BlockExplorerMedia]

Yes, never deploy your .env file anywhere over the internet because that would expose your private key and allow anyone who has it to control your wallet. You normally do deployments from your local dev env anyways, so no need to have the env file anywhere but on yur local machine. You would use the Hardhat config with network endpoint and private key for both testnet and mainnet deployments - it works exactly the same way, just different endpoint.

[@danieladdison6373]

I have a question. I notice at the beginning when you ran the aave packages with the dotenv package, the env package populated. When I ran the aave packages with the dotenv package, it didn't populate. Anyone know why that is?

[@blindperdition4931]

.env files are private files that hold secret information so they don’t get committed to repos. I checked the GitHub project and there is a .env.example so you could just clone the repo and rename the .env.example file to just .env

[@hazelcham3le0n1]

So does this only work on the Goerli test network? Does it work on the actual Ethereum network?

[@CyberDTech]

yes it does

[@joseph5058]

great tutorial would be nice tho if we could get a mainnet tutorial on the arbitrage

[@QuentinBSmith]

Yeah I want the same

[@CyberDTech]

yes its available

[@darkknightpepe]

Is there a guide to use this on mainnet? Would I need a node running? Thanks

[@CyberDTech]

yes I can help with that

[@cryptoBlockchainDev]

Is that solidity codes?