A framework for flash loans on Bitcoin.
Digital Flash is a Clarity smart contract that enables users to execute flash loans on a DeFi platform. Uncollateralized loans allow borrowers to borrow money without putting up any upfront collateral, as long as the borrowed money is returned within the same transaction block. DigitalFlash can be used to make flash loans on a number of DeFi platforms and allows for the following:
Execute flash loans across multiple DeFi platforms.
Check that the smart contract has a sufficient balance of the specified asset to cover the amount of the flash loan.
Use the borrowed funds to carry out the desired action.
Pay back the flash loan in the same transaction block.
DigitalFlash is a preliminary ideation on what's possible if we combined flash loans with a Clarity smart contract. It is important to note that the DigitalFlash smart contract has not been audited, the legal implications have not been explored prior to the publishing of this open source Clarity smart contract and the potential tax implications of DigitalFlash may carry varying outputs of fiscal responisbility in various jurisdictions around the world. Use at your own risk.
NoCodeClarity believes in the power of Bitcoin and Stacks so it's important that DigitalFlash is open source.