"Flash Loan Attack", a Method to gain earning within token swaps.
So, what if you can get a capital gain from a transaction within two token swaps, sounds imposible right? But here's the thing. Yahoo finance posted an article about it and said :
PancakeBunny Attacked With Massive $200M Flash Loan Exploit
An attacker made off with around $200 million from the BSC exchange after manipulating its price. The team tweeted on May 20 to confirm that there was no smart contract hack or vault compromise but more of an “economic exploit”.
It explained that the hacker used PancakeSwap to borrow a huge amount of BNB before going on to manipulate the price of USDT/BNB as well as BUNNY/BNB.
Once the price had been pumped, the attacker dumped all of the BUNNY tokens he had accrued back onto the market, causing it to crash, before repaying the BNB flash loan.
You can read the full article here : https://finance.yahoo.com/news/pancakebunny-attacked-massive-200m-flash-050619340.html
Also, an article posted on beincrypto.com said that:
DeFi Protocol bEarn Suffers $11M Flash Loan Attack
It’s another day, and another decentralized finance (DeFi) flash loan exploit has reared its head. The latest victim is bEarn, which lost $11 million in stablecoins on May 16.
The full article : https://beincrypto.com/defi-protocol-bearn-suffers-11m-flash-loan-attack/
What is Flash Loan?
Flash Loan is a feature from DeFi that allows someone to quickly borrow Crypto nominal ( Eg. 1.000.000 DAI), refunded in the same hash transaction on the same blockchain, and only cost a little amount of fee.
Flash Loan can be done with a huge nominal if you had a balance in your wallet. For example, John has 100 DAI in his wallet, so John could borrow 10.000 DAI. So, how is the Flash Loan Attack Technique got revenue?
In general, john had to have a purpose before john borrowing from Flash Loan. For example, he intends to buy ETH, BNB, or any other crypto coin. So that if John borrows 1.000.000 DAI, then bought 500.000 DAI to ETH at market A and 500.000 DAI to BNB at market A and both are sold back to get DAI at the market B ( where market A and B has different prices ) and then John got 1.001.000 DAI. So John's profit is 1.000 DAI ( exclude the transaction fee ). Note: That transaction very fast and recorded in the 1 Blockchain transaction.
Here is the full explanation about the Flash loan Attack : https://coinmarketcap.com/alexandria/article/what-are-flash-loan-attacks?
Detailed Tutorial on How To Flash Loan Attack
Now that you are willing to do the flash loan attack, I'll show you how to do it with the easiest and simplest tutorial below.
Flash Loan Attack can be done with a methode by these two type of blockchain, ETH and BNB. The difference between them is that ETH using Uniswap and BNB using Pancakeswap. Each blockchain has different gas fees, so choose wisely.
Flash Loan Attack can be done with a methode by these two type of blockchain. Each blockchain has different gas fees, so choose wisely.
Choose a methode below :