simulating-flash-loans

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Simulate flash loan strategies with profitability calculations and risk assessment across Aave, dYdX, and Balancer. Use when simulating flash loans, analyzing arbitrage profitability, evaluating liquidation opportunities, or comparing flash loan providers. Trigger with phrases like "simulate flash loan", "flash loan arbitrage", "liquidation profit", "compare Aave dYdX", "flash loan strategy", or "DeFi arbitrage simulation".

9installs

Sourcejeremylongshore/claude-code-plugins-plus-skills

Added on2026-03-09

NPX Install

npx skill4agent add jeremylongshore/claude-code-plugins-plus-skills simulating-flash-loans

SKILL.md Content

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Simulating Flash Loans

Overview

This skill simulates flash loan strategies across major DeFi protocols (Aave V3, dYdX, Balancer) with profitability calculations, gas cost estimation, and risk assessment. It enables developers and researchers to evaluate flash loan opportunities without executing real transactions.

Prerequisites

Before using this skill, ensure you have:

Python 3.9+ with
```
web3
```
,
```
httpx
```
, and
```
rich
```
packages
RPC endpoint access (free public RPCs work fine)
Understanding of flash loan mechanics and DeFi protocols
Optional: Etherscan API key for better gas estimates

Instructions

Step 1: Configure RPC Endpoint

Configure your RPC in

{baseDir}/config/settings.yaml

:

yaml

# Free public RPCs (no signup required)
rpc_endpoints:
  ethereum: "https://rpc.ankr.com/eth"
  polygon: "https://rpc.ankr.com/polygon"
  arbitrum: "https://rpc.ankr.com/arbitrum"

Or use environment variable:

bash

export ETH_RPC_URL="https://rpc.ankr.com/eth"

Step 2: Simple Arbitrage Simulation

Simulate a basic two-DEX arbitrage:

bash

python {baseDir}/scripts/flash_simulator.py arbitrage ETH USDC 100 \
  --dex-buy uniswap --dex-sell sushiswap

This calculates:

Gross profit from price difference
Flash loan fee (provider-specific)
Gas costs
Net profit/loss

Step 3: Compare Flash Loan Providers

Find the cheapest provider for your strategy:

bash

python {baseDir}/scripts/flash_simulator.py arbitrage ETH USDC 100 --compare-providers

Output shows:

Provider	Fee	Net Profit
dYdX	0%	$245.30
Balancer	0.01%	$242.80
Aave V3	0.09%	$225.50

Step 4: Liquidation Profitability

Analyze liquidation opportunities:

bash

python {baseDir}/scripts/flash_simulator.py liquidation \
  --protocol aave --health-factor 0.95

Shows positions below health factor threshold with:

Collateral value
Debt value
Liquidation bonus
Net profit after costs

Step 5: Triangular Arbitrage

Simulate multi-hop circular arbitrage:

bash

python {baseDir}/scripts/flash_simulator.py triangular \
  ETH USDC WBTC ETH --amount 50

Analyzes path profitability:

Path: ETH → USDC → WBTC → ETH
Gross: +0.15 ETH
Fees:  -0.045 ETH (3 swaps)
Loan:  -0.045 ETH (Aave fee)
Gas:   -0.02 ETH
─────────────────────
Net:   +0.04 ETH ($101.73)

Step 6: Risk Assessment

Add risk analysis to any simulation:

bash

python {baseDir}/scripts/flash_simulator.py arbitrage ETH USDC 100 --risk-analysis

Risk factors scored:

MEV Competition: Bot activity on this pair
Execution Risk: Slippage and timing sensitivity
Protocol Risk: Smart contract and oracle risks
Liquidity Risk: Depth available for trade size

Step 7: Full Analysis

Run complete analysis with all features:

bash

python {baseDir}/scripts/flash_simulator.py arbitrage ETH USDC 100 \
  --full --output json > simulation.json

Output

The simulator provides:

Quick Mode:

Net profit/loss
Provider recommendation
Go/No-Go verdict

Breakdown Mode:

Step-by-step transaction flow
Individual cost components
Slippage estimates

Comparison Mode:

All providers ranked
Fee differences
Liquidity availability

Risk Analysis:

Competition score (0-100)
Execution probability
Protocol safety rating
Overall viability grade

Flash Loan Providers

Provider	Fee	Best For	Chains
dYdX	0%	Maximum profit	Ethereum
Balancer	0.01%	Pool tokens	ETH, Polygon, Arbitrum
Aave V3	0.09%	Any token	ETH, Polygon, Arbitrum, Optimism
Uniswap V3	~0.3%	Specific pairs	ETH, Polygon, Arbitrum

Supported Strategies

Simple Arbitrage: Buy on DEX A, sell on DEX B
Triangular Arbitrage: A→B→C→A circular path
Liquidation: Repay debt, claim collateral bonus
Collateral Swap: Replace collateral without closing
Self-Liquidation: Efficiently close own position
Debt Refinancing: Move debt to better rates

Error Handling

See

{baseDir}/references/errors.md

for comprehensive error handling.

Common issues:

RPC Rate Limit: Switch to backup endpoint or wait
Stale Prices: Data older than 30s triggers warning
No Profitable Route: All routes lose money after costs
Insufficient Liquidity: Trade size exceeds pool depth

Examples

See

{baseDir}/references/examples.md

for detailed examples including:

ETH/USDC arbitrage simulation
Aave liquidation analysis
Multi-provider comparison
Historical backtesting

Educational Disclaimer

FOR EDUCATIONAL PURPOSES ONLY

Flash loan strategies involve significant risks:

Smart contract bugs can cause total loss
MEV bots compete for same opportunities
Gas costs can exceed profits
Protocol exploits may have legal implications

Never deploy unaudited code. Start with testnets. Consult legal counsel.

simulating-flash-loans

NPX Install

Tags

SKILL.md Content

Simulating Flash Loans

Overview

Prerequisites

Instructions

Step 1: Configure RPC Endpoint

Step 2: Simple Arbitrage Simulation

Step 3: Compare Flash Loan Providers

Step 4: Liquidation Profitability

Step 5: Triangular Arbitrage

Step 6: Risk Assessment

Step 7: Full Analysis

Output

Flash Loan Providers

Supported Strategies

Error Handling

Examples

Educational Disclaimer

Resources