MIP.C2-0024: Allow Flashloans for ARTH

Governance Development Proposals (C2)
1

Submitting Author

Abstract

Flashloans allow for users to borrow/repay large amounts of ARTH in the same transaction with 0 to perform creative things such as leverage, arbitrage etc.

Flashloans have been around in DeFi for some time and enabling flashloans for ARTH will allow us bring more creative/DeFi use-cases for ARTH.

The Flashloan contract currently takes a 0.1% fee on the ARTH borrowed, to be paid in ARTH. This fee is adjustable and goes back to the DAO.

This is an important feature to allow DeFi users to take leverage with our upcoming lending protocol that we plan to launch.

Payload

Allow for the ARTH flashloan contract, which is currently deployed at https://etherscan.io/address/0xc4bBeFDc3066b919cd1A6B5901241E11282e625D to have minting and burning permissions for ARTH.

This contract is secure and has it’s ownership set to the MahaDAO governor (which means that MAHA holders will be the only ones voting to pause or change the fees for this contract).

References:

  1. Github
  2. Etherscan
Allow for Flashloans?
  • Ye
  • Nay

0 voters

2

Flashloans are not always used for good purposes. We should make sure that the activation cannot harm us.

Is there an upper limit to how much Arth you can move per transaction? If not, would it possibly make sense to include one if this were possible?

3

Yes historically there have been exploits that have used flashloans to borrow large sums of a token and manipulate the system. However in general it has been used more often for things like arbitrage or taking on leverage with DeFi contracts.

Ideally there should be no upper limit because we never really know what is a good upper limit to put. 1mn? 100mn? 1bn? etc…

Also to note that there is a borrowing fee of 0.1% which can make it unfeasible for a person flash-loaning something like 100mn ARTH because then they’d have to pay 0.1% 100k ARTH as a fee for doing so.

4

flashloans always bring good utility as they’re executed instantaneously and does’nt require collateral but they are Subject to exploitation ( the famous flashloans attakes ) , but im in favor & optimistic so i vote yes