Flash loans are a type of uncollateralized lending that have become very popular in decentralized finance (DeFi), which can be used across decentralized finance protocols based on the Ethereum network, and more recently on Binance Chain.

What are Flash Loans?

Aave is a borrowing and lending platform that enables flash loans, which are rapidly executed loans that are paid back in quick succession without the need for collateral. In other words, Flash loan is an instant loan with one condition saying it must be repaid within a single Ethereum transaction.

Aave flash loans works like a borrower can request funds from Aave, but he/she must pay back those funds with a 0.09% fee, within the same block. If the borrower fails to do so, the entire transaction will get cancelled, so that no funds were ever borrowed. The biggest flash loan Aave has processed to date was about $200 million.

Compound Flash loans are only a small fraction of the overall loan count on the Compound network, with only a handful or two occurring daily. They appear to be raising consistently with a percentage improvement from 1% to 2% of all loans being turn out as Flash loans in recent days.

Here is the graph that shows the daily volume of Flash loan transactions happened on Aave over the past 30 days.

This graph depicts the daily volume of Flash loan transactions grouped by Symbol, happened on Aave over the past 30 days.

This graph gives the monthly average volume of Flash loans transacted on Aave over the past 6 month and could see a good rise around mid of May 2021.

Below is the Total Volume of flash loans traded on Aave over the past 6 months and from this graph, we can interpret that high Flash loan volume has been recorded in the mid of May 2021.

This graph provides the Daily volume of Flash loan transactions on Compound over the past six months and we could see that high flash loan volume recorded around July 1, 2021.

Here is the Total Volume by symbol of Compound flash loans transacted over the past 6 months on compound network.

Conclusion:

Comparing Flash Loans Volume on both Aave and Compound platform in the recent 6 months, we could sense that both had hit the highest volume around mid of May 2021 and later has come down little bit and retained as stable till now.