Creating a Flash Loan using Aave

In this project

• Create and deploy a Flash loan smart contract
• Receive funding with the liquidity protocol called Aave
• Transact with our deployed contract to execute a Flash loan

What is flash loan:

1- In traditional finance, borrowers many times are required to offer collateral to receive a loan. This collateral is usually in the form of an asset like a car or home. Banks use this collateral as security to cover losses if the borrower fails to pay. 

2- In the world of Decentralized Finance(DeFi), a borrower can receive a loan without the need for providing collateral by using flash loans.

3- In a flash loan, lenders can both provide a loan to a borrower and be paid back for that loan in a single transaction. This is possible because of the time that a transaction is started and when it is finally committed to a block on the blockchain. 

Requirements

• Remix IDE

• Metamask Wallet

Setup Of Smart-Contract

• Open remix then create a folder and in that folder you will paste all contracts same as mentioned in my github.

About contracts

Flashloan.sol

• This is the flash loan smart contract. It contains an ExecuteOperation function that the contract will call to complete the operations that will use the funds from the loan.

FlashLoanRecieverBase.sol / IFlashLoanReciever.sol

• This is what allows the contract to receive funds for the flash loan

ILendingPool.sol / ILendingPoolAddressProvider.sol

• Points to the Aave lending pools that will fund the flash loan

Withdrawable.sol

• Allows for other contracts to withdraw funds from this contract in the case of incorrect or stuck funds

• Note: Do inject web3

Note: Make sure funds should be in your wallets 

Note: Use kovan address