- The bot made just $3 profit
- It used the MakerDAO DssFlash contract to do so
- The deposit was made in stablcoin DAO
On Wednesday, June 14, an unknown arbitrage bot made a huge $200 million deposit into the MakerDAO decentralized lending system. He took out a flash loan in stabelcoin DAO, and as a result made a profit of $3.24 including commission costs.
According to Arkham Intelligence, the bot took advantage of MakerDAO’s “DssFlash” contract, which allows users to borrow any amount of DAI for free.
The flash loan is a form of loan that is made and returned within one block without the need for collateral. In this case, the bot received a loan of 200 million DAI and used them on the Aave DAI market, then receiving a loan of $2,300 ETH, which was wrapped in WETH.
It is interesting that the total profit was $33, but considering all commission costs this amount was reduced by almost 90%. That is, John Doe was able to make $3.24 while spending $200 million.
In the past, flash loans have been used for not-so-fair purposes. For example, Decentralized Financial Platforms (DeFi) such as Platypus and 0VIX have reported cases that have resulted in losses of more than $10 million.