# How to make passive Income with Flash Loans in 2026

## Метаданные

- **Канал:** Dapp University
- **YouTube:** https://www.youtube.com/watch?v=oZ0AY70vZ9w
- **Источник:** https://ekstraktznaniy.ru/video/39089

## Транскрипт

### Segment 1 (00:00 - 05:00) []

One of the absolute best things about blockchain technology is that you have open access to a brand new financial ecosystem where you can do things that you cannot do anywhere else like with flash loans. You know, this is where you can borrow millions of dollars in cryptocurrency for free to make passive income. And this video, I'm going to explain how you can do this in 2026. So, if you're new around here, hey, I'm Gregory. And on this channel, I turn you into a blockchain master. So, if that's something you're interested in, then smash that like button down below and subscribe. All right, so let's get into this. So, first of all, what are flash loans? So, you probably already know what they are if you clicked on this video, but just in case you want a refresher, this is a technique where you can borrow, you know, millions of dollars in cryptocurrency for free on the blockchain as long as you pay it back in the same transaction. All right, so what can you do with that? Well, things like arbitrage-based trading bots where you buy crypto on one exchange and sell it on another. You can do it for leveraged yield farming, but additionally, you can also use them for your own crypto trading. All right? And that's exactly what I talk about how to do in this video because you can trade crypto that you don't really have, which is pretty crazy. Now, I'm going to show you exactly how it works in this video, but if you want to steal the application that I'm talking about, then make sure you hold your spot for the flash loan master class next Thursday, February 19th. Inside, I'm going to show you everything you need to know about flash loans and how to do this exact strategy that I'm showing this video and then let you actually steal my flash loan trading app. Trust me, you don't want to miss this. Hold your spot with the link down below. All right, so let's see how you can actually trade crypto that you don't already have. Well, basically this is going to go back to a classic technique of going long and going short with trades on the blockchain in DeFi without any middlemen. All right, so if you're not, you know, a trader or maybe like you're a coder or you're just, you know, interested in blockchain but you don't exactly know what those terms mean, let me clarify them for you. You know, this is a technique that's been around for a long time. Way before cryptocurrency. People have been doing this in the stock market with other assets for a very long time. Okay. So, let's talk about it, you know, with cryptocurrency and how you do DeFi on the blockchain. So, essentially, let's say that you wanted to essentially trade, you know, one Ether or you want to go long on it. Well, basically what that means is you're betting on the price of Ethereum or Ether going up over a certain period of time. Now, if you bought, you know, one Ether today at around, let's just call it $2,000 for easy math, and then, you know, the price of Ether doubled and you sell it at, you know, $4,000. Well, if you had one Ether, then you would make, you know, essentially a $2,000 profit. You double your money. However, what if you were able to double the amount of Ether that you're able to purchase with the same amount of money. So, what does that look like? Well, basically it means if you have one ether and then you could borrow the money to get a second ether. So you have two ether for the price of one because you borrowed half of it and then you hold on to that. All right, whenever you go to sell it, if the price of ether doubled, then you basically double your profit at that point. All right, so let's see how this would work on the blockchain. So I've got this application here, a pulled up. Okay, so what is a if you're not familiar? It's one of the OG savings and lendings applications on Ethereum. Okay. So, basically it works kind of like a bank where you can deposit money and also take out loans on the other side. So, you might say like, you know, why would I take out loans if I have to deposit? It's an overcolateralized loan. You have to deposit money in order to take out a loan. There's lots of different reasons, but one of them is the technique that I'm showing you in this video. So, basically, you could deposit, you know, Ether, uh, Ethereum cryptocurrency, and you could turn and borrow a stable cryptocurrency like USDC, for example. All right. Right here. So here on the diagram essentially what you would do if you were to go long on ether on a without a flash loan essentially you'd supply you know one wrapped ether u you would you know essentially uh take this out all right and then swap it for one USDC for we all right it's going to give you a 2x lever and then as that price of ether appreciates essentially you could sell it and then you know get that profit okay so you can do this long with flash loans like I was talking about before with like balancer where you increase this exposure and increase your leverage and increase your profitability potential. Okay, if Ether actually goes up in price um like you expect it to. So essentially, let's say you transfer, you know, 2,000 USDC, you flash loan 2,000 USDC, now you have $4,000 to work with. Okay? You swap the $4,000 USDC for two wrapped ether. Now you can get two wrapped ether instead of just one. Then you supply the two wrapped ether to a. And then you turn around and instantly borrow the $2,000 USDC to pay back the flash loan. And you pay it back with this step right here. Now you've got uh two Ether uh sitting in the protocol. And whenever that doubles, you can get the profit off of two ether instead of the one before. So this is important to understand because you with flash loans, you have to borrow the money and pay it back in the exact same transaction. And all these steps that I'm showing you here go through in the exact same blockchainbased transaction. And so that's how you do this with a that's how you use flash loan to increase this. Now on the other side of the thing is you can also go short. So if you're betting on the price of a cryptocurrency going down that's what

### Segment 2 (05:00 - 07:00) [5:00]

shorting is. You can do the same thing with flash loans and without. So without basically you can borrow 2,000 rap sorry 2 USDC borrow. 5 we swap the. 5 we for USDC and if you um if the price goes down you can basically just sell it and then do the opposite. Okay. So with flash loans, basically it would look like transferring one wrapped ether. Uh transferring flash loaning one wrapped ether. So you have two wrapped ether now swapping both of those for 4,000 USDC, supplying 4,000 USDC to a borrowing one wrapped ETH, paying one wrapped ETH flash loan back. And then whenever the price of Ether goes down, you just buy it back with USDC and you're able to keep a profit on top of that. Okay. So obviously with this technique, um this is not a very high frequency thing. This is like if you're expecting it to essentially go up over a certain period of time, but you can actually make this more high frequency. So all these positions that I'm showing you here in a you could actually automate this with scripting purposes based off your own trading algorithms and actually, you know, enter and exit these positions at much higher frequency times rather than just like steadying it here and then doing it on a medium-term maybe like swing trade type of situation. or you could plug this exact technique into a trading bot if you were trying to trade this on a very high frequency basis. Now, obviously with this strategy, if you're talking about using leverage for trading, there's always going to be risks with that type of situation. And I want to be very clear about what those risks are. Okay? So, anytime that you open a position on a borrowing, you know, funds to do this, um, and the prices are changing with volatile cryptocurrencies, you're always in the risk of having your funds liquidated, either some of that position or all of that position. Okay? So basically the price moves on you too much that can compromise your position. But as long as you're, you know, have healthy collateral amounts and safeguards about how to sell like before you get into full liquidation territory, you can mitigate those risks. But those risks are on the table and I want to be completely transparent about it. All right, so that's an overview of how you can use flash loans to make passive income in 2026. So if you want to steal my application and see exactly how to do this step by step, then make sure you hold your spot for the flash loan master class next Thursday on February 19th. Inside, I'm going to show you everything you need to know about how to do flash loans and how to do the exact strategy that I'm talking about in this video and let you steal my passive income application. So, trust me, you don't want to miss this. Hold your spot the link down below. Hey, if you like this video, make sure you smash the like button down below. Subscribe to this channel.