Flash Loans on Anchor

[atebites]

Flash loans would address multiple community suggestions with 1 shot:

Use Anchor idle cash to enhance yield

Conceptually I am in favor of this. However, there are large counterparty risks (human, smart contract, etc) that could lead to insolvency on the protocol. Doing so would deal a death blow to Anchor. It is not uncommon for lending/borrowing institutions to lend out their reserves for greater capital efficiency. This currently happens with large CeFi platforms - such as Celsius and Voyager, who lend out their reserves to firms such as Jump to guarantee yields for their users. It is also ubiquito…

Proposal: Auto repayment of Anchor Borrow from Anchor Earn at LTV threshold

I think this would be a great idea, and if implemented, everyone would use borrow and earn functions to the fullest overnight!

http://forum.anchorprotocol.com/t/collateral-free-loans/4251/6

http://forum.anchorprotocol.com/t/automatic-loan-pay-down-from-earn-balance/3715/12

http://forum.anchorprotocol.com/t/simplify-leveraging/3849/4

Where is the UST deposited on Anchor Protocol being used for?

TrueFi got this idea and was supported by SBF and a16z. Especially the FTX lack of liquidity of UST. I guess SBF will like this idea.

I think there is very strong community incentives to work on this.