Money Market Protocol Aave Settles $300 Million in Defi Flash Loans – Finance Bitcoin News


Money Market Protocol Aave Settles $300 Million in Defi Flash Loans

This weekend the decentralized money market protocol Aave broke records as the community witnessed a massive flash loan of $14 million worth of the stablecoin DAI. So far, the Aave protocol has seen over $300 million in flash loans to-date and this trend doesn’t seem to be abating any time soon.

In just a short period of time, the Aave protocol (the Finnish word for “ghost”) has seen enormous demand. Essentially, Aave is a decentralized finance (defi) protocol that currently has 19 supported tokens including ethereum (ETH).

To-date the total-value locked (TVL) is around $1.5 billion at the time of publication. Aave allows for unique lending and borrowing experiences like flash loans, credit default swaps, and credit delegation.

Flash loans are a unique concept that allows the user to borrow funds without the need for collateral.

“Flash Loans are the first uncollateralized loan option in defi,” the Aave website explains. “Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.”

Aavewatch stats show during the last two months people leveraging flash loans have grown exponentially.

On August 29, a user executed Aave’s largest flash loan of $14 million worth of DAI and so far Aave has seen $300 million in flash loans. More than half of the aggregate of flash loans settled were executed during the month of August.

Data from the web portal Aavewatch shows that flash loans executed from July 30 to September 1 saw an increase of 117%. The month prior defi flash loans using Aave increased by 809%.

Despite the Aave website explaining that flash loans are for developers, a number of people without programming abilities are leveraging these types of uncollateralized loan options.

Today there’s a couple of online tools that create defi composability. This means any user can leverage a number of defi apps in a lego-like fashion and execute the actions in a single transaction.

Furucombo is a tool that can create a variety of defi actions that will be settled in a single transaction. The customized defi lego tool, however, is in beta software and users should understand that the platform could be unstable and risky.

One tool called Furucombo is a defi application that creates “defi legos” with a number of protocols. However, the creators warn that “Furucombo is beta software, and it should be treated as highly unstable.”

Despite the warning, users can leverage the application to create defi composability with applications like Aave, Maker, Uniswap, and by simply connecting a wallet.

“Create customized defi legos and put all strategies into one transaction,” the tools website notes. “Pick up a defi protocol you want and set up the inputs. You can then send the transaction or pick another defi protocol. Drag the cube to rearrange the order of your actions. Once you’re ready to send out the transaction, connect your wallet and click ‘Send.’”

Another application, called also offers functionality with Aave, Maker, and Compound.

Users can connect their Metamask wallet or hardware wallets like Trezor and Ledger as well in order to access’s user interface.

This will allow for a connection with a defi protocol’s default app like Aave’s platform. Users can then create a traditional account but also build a smart wallet.’s smart wallet feature provides a personal smart contract wallet that will enable the usage of advanced features.

Tags in this story
117%, Aave,, decentralized finance, DeFi, Defi Apps, defi composability, Flash loan options, Flash loans, Furucombo, lego-like transactions, Maker, uniswap, zero collateral

What do you think about the Aave platform issuing $300 million in flash loans? Let us know in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Aavewatch, Furucombo,

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