Permissioned Flashloans

VCRED's unique flashloan structure

VCRED's Flash Product

A fixed-rate fee is a type of fee structure where a set amount is charged for a specific service, regardless of the underlying transaction size or value. In the context of DeFi, a fixed rate fee can be charged for services such as trading, lending, borrowing, or asset management.

When it comes to flashloans, most protocols adopt a fixed rate fee model for developers to access flashloans. Consequently, incorporating variable fee rates and building on top of this requires a new code base, different from the existing protocols. Instead of feeless flashloans making it a race to the bottom, maximizing liquidity provider rewards with variable rates on assets optimizes usability. By combining the variable fee rate and arbitrage executor to perform within one block, we are able to abstract the complexity of a flashloan arbitrage, provide a smooth UX instead of a complex developer-focused interface, and share the rewards of this process with liquidity providers.

VCRED’s permissioned flash loan is a new innovation in DeFi, enabling liquidity providers to execute strategies in the background, without bad actors using the liquidity to attack other protocols. Once a perfect arbitrage opportunity is discovered, our arbitrage bots borrow liquidity for a single transaction through permissioned flash loans to generate rewards, failed transaction results in just gas fees.