Introduction and methods

An important aspect of the AAVE platform is the total amount that depositors earn. In this case, depositors receive continuous earnings that evolve with market conditions based on:

• The interest rate payment on loans: depositors share the interests paid by borrowers corresponding to the average borrow rate times the utilisation rate. The higher the utilisation of a reserve the higher the yield for depositors.
• Flash Loan fees: depositors receive a share of the Flash Loan fees corresponding to .09% of the Flash Loan volume.

Each asset has its own market of supply and demand with its own APY (Annual Percentage Yield) which evolves with time.

The intention of this dashboard is to show the frequency and volume of AAVE Flashloan use in 2022, creating a profile for a typical Flashloan user in 2022. To carry out the approach, I have compared the daily Aave borrows and flash loans in order to see the frequency in a more comprehensive manner.

The data have been computed since January 2022 in a daily basis. The first part shows the daily borrows and flash loan events, as well as the average actions per user and the total volume moved. The second part is about the profile user. To do that I have computed the following metrics:

• Average Flash Loan users’ balance in USD
• Average daily transactions of Flash Loan users
• Top 10 contracts used by the major number of Flash Loan users \n

Results

Looking at the daily number of flash loans, we can see at the image situated above on the left how the numbers are not so high. However, there are some periods when the Flash Loans are more frequent. While during the major of the days the amount of Flash Loans are below 100, during finals January, or mid of May, or mid of June, the number of Flash Loans spiked to more than 200.

Something similar occurred with the average daily Flash Loans per user, during the same aforementioned periods, the average was higher.

Finally, looking at the volumes, it seems like this is not linked to the previous metrics. In this case, there are two main peaks in differnt dates but in the major of the days the volume oscillated between 1 and 10M.

In general, the numbers are lower than borrows as expected.

Regarding the second approach, we can see how the Flash Loan user profile looks like.

We can see how it seems like this type of users are active users doingan average of 2.61 daily transactions, having an important amount in their balance. Basically, the average balance of these users are over 30k USD.

Finally, if we take a look at the top 10 contracts used by the major number of Flash Loan users, we can see how the major of them are coins like WETH, USDC, USDT, DAI or WBTC. However, there are 3 main Aave contracts situated on the top 10 and used by more than 1k Flash Loan users, all of them related to bearing interests.

Conclusions and key insights

This dashboard shows a general approach about the Flash Loan activity on Aave network. The analysis shows a comparison between the main borrow loans and the Flash Loans carried out on the network. As well, an approximation of a typical Flash Loan profile have been provided over the study.

The key insights extracted from the report have been the following:

• While during the major of the days the amount of Flash Loans are below 100, during finals January, or mid of May, or mid of June, the number of Flash Loans spiked to more than 200 and then, the frequency increased during those periods.
• The average daily Flash Loans per user behavior is similar to the daily amount of Flash Loans. During the same aforementioned periods, the average was higher.
• There were two main peaks in differnt dates regarding the volume of Flash loans but in the major of the days the volume oscillated between 1 and 10M.
• In general, the numbers are lower than borrows as expected.
• The Flash Loan users are active users doing an average of 2.61 daily transactions, having an average balance over 30k USD.
• The top 10 contracts used by these Flash Loan users are coins like WETH, USDC, USDT, DAI or WBTC. But, there are also 3 main Aave contracts situated on the top 10 and used by more than 1k Flash Loan users, all of them related to bearing interests.