How to not be responsible for a flash loan attack

[Plankton5165]

I hear as a flash loan user, I can cause a flash loan attack, and even face legal penalties for it. How do I do flash loans and still prevent this from happening? What is the percentage of the daily volume I can trade max?

 

[Sol]

Don't flash loan attack?

 

[Plankton5165]

Don't flash loan attack?

Yes, but how do I not flash loan attack?

 

[Sol]

Yes, but how do I not flash loan attack

I think you are confused as to what flash loan attacks are which is okay because even I am not 100% sure.

Attackers borrow large amounts of money, tens of millions they do this WITHOUT collateral, they pay nothing as long as they repay the amount back in the same transaction. This is key, same transaction. The attacker uses this borrowed money to target protocols or small liquidity markets, usually they go for startup protocols that don't have the right security measures. If the attacker profits from this (they almost always do) they can keep whatever they made from the attack, but they must repay the loan back in the same transaction/block.

This is why attacks are SO fast everything is done within seconds.

 

[sMouse]

I hear as a flash loan user, I can cause a flash loan attack, and even face legal penalties for it. How do I do flash loans and still prevent this from happening? What is the percentage of the daily volume I can trade max?

i doubt you’ll face any kind of legal penalties doing flashloans in an unregulated (decentralized) market. Take a peek at JaredFromSubway who’s been running a MEV bot for the past year burning huge amount of gas and making about 1mil$ a day doing so.

its legal, but definitely morally questionable.