Flash Slurping

SLURP is the first yield aggregator to feature flash slurping, a feature that allows users to farm without owning any assets and to collect up to 10x more the rewards in any farming pool.

Definition of Flash Slurping

Flash slurping is the art of making a collateralized flash loan which can assume certain losses in the same transaction unlike a traditional flash loan. This allows to have a much higher APR while not taking any risk (for farming).

To understand this concept, we must first understand what a flash loan is.

What is a flash loan?

Flash Loans are the first uncollateralized loan option in DeFi!

Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.

Flash Slurping

Slurp therefore uses this concept to do flash slurping.

A user can borrow a theoretically infinite amount to farm and therefore have an infinite amount of rewards. On the other hand, he must reimburse what he put in the same transaction.

This is therefore often problematic because there can be volatility in farming.

This is why flash slurping proposes to collateralize this flash loan so that it can withstand a certain volatility of the pool (impermanent loss)

By doing flash slurping the user can earn up to 10 times more rewards in his pool and at a minimal risk.

Example

User A flash slurps a farming pool with an APY of 200% with a colatteral that he deposits of 1000 dollars.

He chooses to take the minimum 10% colateral. The value of his flash slurp is now worth 10,000 dollars.

With an APY of 200% he earns $ 20,000 per year and only with an initial collateral of $ 1,000.

He therefore has an APY on his flash slurp of 2000% instead of 200%.