Someone Flash Loaned $200M From MakerDAO to Make $3 Profit

Bitget App

Trade smarter

Bitget

News

Markets

Someone Flash Loaned $200M From MakerDAO to Make $3 Profit

Coindesk2023/06/14 18:54

By:Oliver Knight

An arbitrage bot took advantage of MakerDAO's 'DssFlash' contract, creating a $200 million flash loan to extract $3 in profit.

An arbitrage bot flash loaned $200 million worth of the dai stablecoin (DAI) from MakerDAO on Wednesday, making a $3.24 profit after transaction fees.

The bot took advantage of MakerDAO's 'DssFlash' contract, which permits users to borrow any amount of DAI without incurring fees, according to crypto data provider .

A flash loan is a type of loan that is received and paid back within a single block without any upfront collateral. In this instance, the bot borrowed 200 million DAI tokens and supplied them to the Aave DAI market, borrowing $2,300 worth of wrapped ether (WETH) against it.

That WETH was used to buy Threshold Network (T) on Curve before it was sold on Balancer in a myriad of single-block transactions.

The total profit before fees was $33, however, it incurred almost $30 in transaction and protocol fees, leaving a net profit of $3.24.

Flash loans have been in the past, with a string of flash loan exploits on decentralized finance (DeFi) platforms like and resulting in losses exceeding $10 million.

195

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!

In 2025, the stablecoin market shows strong signs of growth. Research indicates that the market cap of USD-pegged stablecoins has surged 46% year-over-year, with total trading volume reaching $27.6 trillion, surpassing the combined volume of Visa and Mastercard transactions in 2024. The average circulating supply is also up 28% from the previous year, reflecting sustained market demand. Once used primarily for crypto trading and DeFi collateral, stablecoins are now expanding into cross-border payments and real-world asset management, reinforcing their growing importance in the global financial system. More banks and enterprises are starting to issue their own stablecoins. Standard Chartered launched an HKD-backed stablecoin, and PayPal issued PYUSD. The CEO of Bank of America has expressed interest in launching a stablecoin once regulations permit (via CNBC). Fidelity is developing its own USD stablecoin, while JPMorgan Chase and Bank of America plan to follow suit when market conditions stabilize. Meanwhile, World Liberty Financial (backed by the Trump family) has introduced USD1, backed by assets such as government bonds and cash.

Bitget VIP•2025/04/25 06:05