New Way to Make Passive Income with Flash Loans in 2025

One of the craziest things about blockchain is that you have open access to a brand new financial ecosystem where you can do things that you can't do anywhere else, like with flash loans, where you can borrow millions of dollars in cryptocurrency for free to make passive income. And in this video, I'm going to explain a brand new technique for doing this that I've never talked about on my channel. And I'm going to show you how you could do it. So, if you're new around here, hey, I'm Gregory. Now, 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, let's talk about what flash loans are if you're not really sure. You probably are if you clicked on this video, but just a quick recap if you want the explain it like I'm five explanation is basically it's where you can borrow millions of dollars in cryptocurrency for free as long as you pay it back in the same transaction. So, what does that mean? Like, how would you be borrowing things instantly on a blockchain? Well, basically the blockchain supports simple transactions and complex transactions. So, if I'm sending cryptocurrency from my account to yours, that's a simple transaction with one instruction, like just take cryptocurrency out of my account and put it in your account. But you can also do multiple steps in that transaction like, hey, take money out, uh, go do something with it, like trade it on an exchange and then pay the money back as long as you're able to pay the exact same amount. And the great thing about flash loans, there's no risk that you can lose the money, okay? Like, you can't do it on the blockchain. It just won't let you. And you don't need any money down. I don't want to take out the flash loan and they don't cost anything depending on which provider that you're using. Okay, so cool. You can borrow this money in the blockchain and you can pay it back instantly for free with no money down. But like what can you actually do with that money? Like why would you take out a flash in the first place? Well, there's lots of different ways. I've talked about several on my channel. One is like arbitrage trading, okay? Where you can basically see different prices on different cryptocurrency exchanges. You can borrow the money with the flash loan, buy low on one exchange, sell high on the other exchange instantly, and then pay back the profit. I've done several videos on my channel about that. You can do things like leverage yield farming where you can take out like more cryptocurrency than you actually, you know, need to deposit into a yield bearing protocol and then pay the flash loan back instantly in order to essentially get greater exposure there. Now, one way that I've never talked about my channel before, all this is the new way, is basically using flash loans for trading. All right, and that's exactly what I'm talking about in this video where you can basically trade, you know, crypto that you don't really have. All right, it's pretty crazy. Now, this technique in terms of trading is not exactly new, but I've never showed this on my channel before and I've never released the code until now. Now, I'm going to show you exactly how it works, but if you want to steal the application that I'm talking about in this video, then make sure you hold your spot for the flash loan master class next Thursday, November 13th. Inside, I'm going to show you everything that you need to know about flash loans and how to do the exact strategy that I'm talking about in this video. and I'll even let you steal my flash application. So, trust me, you don't want to miss this. Hold your spot with the link down below. All right, so let's talk about how to essentially trade crypto with money that you don't currently have. Well, basically, this is an old technique of going long and a short on an asset. People are doing this for a long time in the stock market. They've been doing it with cryptocurrencies, but what you're doing is with crypto, okay, actually in a permissionless decentralized way with no middlemen on the blockchain. Okay, so let's talk about some of these trading terms. So, if you're a developer or you're just kind of, you know, new to crypto and you don't really understand what, you know, going long and going short means in this way on assets, let's explain it. So, basically, if you're going long on an asset, number one, you're betting that the price essentially is going to increase on that asset. Let's just talk about Ethereum or Ether, for example. And just for example purposes, let's say that Ethereum is worth $2,000. Now, that's not the price at the time of this video, but let's just do that for easy math. So, if you want to essentially bet on Ether appreciating in value over time from $2,000, you could just buy one ETH and when ETH hits $4,000, you could sell it and then you've doubled your money. But you have to wait for it to reach $4,000 to double your money. What if you could essentially, you know, buy one ETH and then essentially have access to another ETH that you don't currently own and then whenever it just appreciates 50% in value, well then basically you've doubled your money at $3,000 instead of waiting for ETH to hit $4,000. But now, how would that actually work with flash loans on a blockchain? Well, first of all, you need to understand what a savings and lending protocol like a does. Okay, so a is one of the OG like savings and linings apps in crypto. Basically, it's a app that works on the blockchain. Okay, the website that you're looking here actually talks to the blockchain and the back end of the application is powered by smart contracts. Okay, so essentially what you do here is you can deposit crypto on one side to earn interest. All right, and then you can also borrow crypto on the other side. All right, just like a bank. But you have to deposit crypto in order to borrow crypto on the other side. and you have to deposit more crypto than you are able to borrow. And it confuses people like why these applications exist in the first place? Like why would you want to take a loan out if you have to have money in the first place and more money than what you're borrowing? Well

it's there's lots of reasons, but one of the reason is essentially to do the technique that I'm talking about in this video, but to actually be able to do with flash loans, which I'll show you here in a second. So basically uh if you let's say that you essentially wanted to deposit uh wrapped ether all right into this protocol all right and then borrow USDC well essentially you would be going long on wrapped ether in that case but then you could essentially do that more with flash loans. So let's look at how this how it would work. So if you transferred let's say 2,000 let's say you're doing one ether and ether is worth uh one or sorry $2,000 like I was talking about before. So, if you transfer $2,000 worth of USDC, you flash loan $2,000 of USDC and then swapped 4,000 Y USDC for two wrapped ether and supplied two wrapped ether to A and then borrowed 2,000 USDC from A and then paid the 2,000 uh USDC flash loan back. So, you flash loan more money, okay? And then you've gotten greater exposure into A. Then essentially as Ether's price is going up, then you have exposure to two Ether. All right, not just one. You only have to have the dollar equivalent of one Ether, but then you're able to flash load the dollar equivalent of two Ether and then perform this. And then now you've got exposure to two Ether sitting in a can essentially just ride it up on essentially 2x leverage. And so in order to exit that position, you basically just do the opposite. You borrow the asset, you close the position, pay the flash loan back, and then split the difference. So that's what it looks like to essentially go long an asset. Basically, you're betting that the price is going to appreciate later. All right, you buy it. But this case, you're using a small amount of leverage with this decentralized finance savings and lending application and using flash loan as sort of the juice or the borrowed funds in order to do that. All right. Now, let's talk about the other side of the equation, which is actually you can also go short with this. So, if you're not familiar with going short, basically that means you're betting that the price of an asset is going to go down. So, let's say that you think that wrapped ether is or sorry, Ether is currently $2,000 and you think it's going to go lower. Well, then essentially what you could do is like without flash loans, you could supply 2,000 USDC, borrow. 5 we would be about half that amount, and then swap 0. 5 We for USDC. All right, that make you short. But if you're in with flash loans, essentially what you do is transfer one wrapped ether, flash loan one wrapped ether, uh swap two wrapped ether for 4,000 USDC, supply 4,000 USDC on a borrow one wrapped ether and pay one wrapped either back with the flash loan. Now, of course, you could swap that for USDC if you think the price is going to go down and then order repay that, you know, you would be out in terms of dollar amount much less. Now, so that's how you could do this manually, you know, with flash loans. like you could essentially have a smart contract to orchestrate this entire process for flash loaning. All right, and then doing moving these positions around and that's not going to be a super high frequency thing necessarily. Like if you're betting on like a swing trade or maybe even like a much longer period than that where you just sort of like, you know, open this position and just wait and you close it out. You can do all that manually. All right, maybe even through your web browser. But if you wanted to do this on a more high frequency basis, then you could automate this into a trading bot where essentially if you have a trading bot that wants to trade regularly, maybe with an algorithmic, you know, set of rules, then you can still do that. And instead of having to make that thing just buy and sell without any extra borrowed capital, you can plug in flash loans this exact same way in order to trade those price movements and then use some flash loan leverage in the process. All right. So, as always with something like this, there are of course risks associated with this. All right. Now, if you are essentially using leverage in any way, leverage when you're trading is always got risks. So, what are they in this case? Well, essentially, there's always a collateral factor on these savings and lending applications. So if you're, you know, borrowing a volatile asset like wrapped ether and you're on a long strategy, for example, and the price goes down too much, then of course, you know, your position could get liquidated because the amount of capital that you're borrowing is relative to what the price of the asset now is. All right? Is making your position delinquent and they can essentially liquidate your asset. Now, the way to avoid this, of course, is to use less leverage to basically make it to where the price had to fall significantly in order for you to hit that. And the way to mitigate that strategy is always to just lose use a small position to where you know the amount of money that you would lose in that process if that did happen wouldn't wreck you. All right, so that's an overview of how to do this passive income strategy for trading with flash loans. Now, if you want to see exactly how this works and steal my passive income application, then make sure you hold your spot for the flash loan master class next Thursday on November 13th. you know, inside I'm going to show you everything that you need to know about flash loans and how to do the exact strategy that I just showed you in this video. So, trust me, you don't want to miss this. Hold your spot link down below. Other than that, you know, make sure you smash the like button down below, subscribe to this channel if you haven't already, and until next time, thanks for watching. and deputy verses.