Flashloans are a technology that I find incredible. However, I am disappointed that this ARC did not go to a governance vote and remained at the discussion stage. So I have to re-launch this discussion.
I looked at the weekly reports for the last 3 weeks (at the time of publication W27, W28, W29. Available here: Aave Weekly: Protocol Performance & Governance Update ). The flashloans have generated an average of $102,636 over the last 3. Knowing that the protocol revenue averaged $11,300,127 over the last 3 weeks, after a quick calculation we realize that flashloans represent about 0.91% of the protocol revenue.
This is a totally negligible revenue in my opinion.
So I agree with @pakim249 and @tobias , we should reduce the flashloans fees to 0% to stay competitive against Dydx, Cream or Unilend, whether on Ethereum, Polygon, and soon Arbitrum. However I don’t agree with this whitelist logic, and a 0% fee drop would settle this disagreement.
AAVE being currently the largest DEFI protocol by TVL, this fee reduction would allow any user to borrow for free (for the time of a transaction only) the highest possible amount of tokens (within the limit of the number of tokens available for borrowing), any protocol, and with a diversity of available tokens.
I’m going to digress slightly from the basic topic but I think this is important too.
We also know that the AAVE Pro Market (now its official name is AAVE Arc) should be available soon. In a logic of allowing all players to take advantage of the DEFI, it would be interesting to allow players present on this market to make flashloans. However, I am still not sure if we should lower the flashloans fees to 0% on this market from the beginning. As this market is regulated, we would also have to check if this would be possible from a legal point of view.