Exercise 10: Advanced Primitives Analysis

⏰ Time Investment: 30-45 minutes 🎯 Goal: Understand flash loans and advanced DeFi

📚 Required Reading Integration 📖 Primary: Lesson 10: Flash Loans and Advanced Primitives

🔍 Phase 1: Knowledge Check (15 minutes)

1. What is a flash loan?

• Your answer: _________________________________

2. How do flash loans work technically?

• Your answer: _________________________________

3. What are legitimate use cases for flash loans?

• Your answer: _________________________________

4. How are flash loans used maliciously?

• Your answer: _________________________________

5. Why don't flash loans exist in TradFi?

• Your answer: _________________________________

📊 Phase 2: Use Case Analysis (15 minutes)

Design flash loan strategies for:

• Arbitrage opportunities

• Collateral swapping

• Liquidation strategies

💡 Phase 3: Risk Analysis (15 minutes)

Analyze the risks:

• For protocols (flash loan attacks)

• For users (when to use flash loans)

• Mitigation strategies