FlashMint
Utilize the FlashMint functionality on Tren Finance to execute your custom strategy
Last updated
Utilize the FlashMint functionality on Tren Finance to execute your custom strategy
Last updated
Flash loans allow borrowers to access the liquidity of an entire lending pool without requiring any collateral, under one essential condition: the borrowed sum, along with any fees, must be repaid within the same transaction block. If this condition is not met, the transaction is reversed, ensuring the lender incurs no loss.
A FlashMint, on the other hand, involves the minting of tokens within a single transaction block, with the requirement that the minted tokens are burned by the end of the same transaction. This mechanism provides temporary access to a large number of tokens without being constrained by the size of a lending pool, as is the case with flash loans.
dApps can leverage FlashMint to enhance their functionality and offer advanced financial operations to their users, including arbitrage, collateral swaps, debt refinancing, liquidation, and other financial strategies.
FlashRepay facilitates the repayment of existing debts, allowing users to unlock collateral, which can then be converted into XY to settle the FlashMint amount. This process enables users to manage their liabilities more flexibly.
A FlashLiquidate function will be introduced down the line to allow external liquidators to liquidate positions without needing to hold a balance of XY. By removing this barrier, participation in the ecosystem is increased, thereby enhancing its overall security.
FlashBorrow provides a streamlined mechanism for users to leverage their assets through a simple, repeatable process. By borrowing XY, converting it into collateral, and redepositing it into the smart contract, users can incrementally amplify their original collateral. The key advantage of using flash loans is that all these steps are executed within a single transaction, making the process of increasing leverage efficient and seamless.
