So have you always wanted to try using some of the more advanced DeFi constructs such as flash loans but didn’t want to get too deep into coding? If the answer is yes, Furucombo may be an ideal tool for you.
Let’s start with what Furucombo actually is.
Furucombo is a tool that allows you to construct an Ethereum transaction using a simple drag-and-drop user interface. It can visualise complex DeFi transaction by showing a chain of interactions displayed as individual “cubes”. Each cube represents one specific interaction, for example, taking a flash loan or swapping coins on Uniswap.
How To Take A Flash Loan
Okay, now let’s try to take a flash loan in Furucombo. If you want to learn more about flash loans you can check out our other article here.
- Go to https://furucombo.app/combo
- Click on the cube with the + sign to add a new cube
- Search for Aave and Flashloan
- Select a token that you want to borrow and the borrowed amount
- Click the Set button
- You’ll see 2 cubes added to the combo. Flashloan cube is a special case as every flash loan has to be repaid within the same Ethereum transaction. Because of that Furucombo creates 2 instead of 1 cube for you
- Now, you’re ready to add some arbitrary steps between the 2 flash loan cubes
- In our example, after we borrow 1,000 DAI from Aave via a flash loan we swap borrowed DAI for USDC on Uniswap and swap USDC back to DAI on Curve.
- At the end of all the steps, we have to repay the initial loan + 0.09% fee
- Before you’ll able to execute your transaction you have to connect your wallet such as Metamask in the last step of your combo
- After the wallet is connected you can Approve and execute your transaction
In our example, depending on the current price of USDC/DAI pairs on Curve and Uniswap, you’ll most likely end up with having to pay more than the amount that was borrowed.
This is, of course, because there is usually no arbitrage opportunity in USDC/DAI between these 2 most popular decentralized exchanges. On top of that, you’ll be paying extra 0.09% of the borrowed amount in fees for being able to take a flash loan on Aave.
After you make yourself familiar with the Furucombo interface you can try adding more cubes to the example.
You can, for example, borrow funds from Compound, create a new vault in MakerDAO or add liquidity to a liquidity pool on Uniswap.
Furucombo is an ideal tool for people who want to be able to create more complex Ethereum transactions. One thing that we have to remember is that you’ll be always limited to what combos you can create by the available cubes. For example, currently, there is no way to use some of the less popular DeFi protocols such as SushiSwap or Cream.
If you’re ready to dive a little bit deeper and start writing your own smart contracts you can check out our guide on how to code your own flash loan with Aave here.