Which DeFi Protocols Are Most Popular for Flash Loan Arbitrage?
Protocols that are popular for flash loan arbitrage are typically those with large liquidity pools and flash loan functionalities. Aave and dYdX are two of the most well-known protocols that offer flash loans directly to users.
Arbitrageurs often combine these loan-providing protocols with various decentralized exchanges (DEXs) like Uniswap, Sushiswap, and Curve, where they can execute the trading part of their arbitrage strategy. The choice of protocols depends on liquidity, fees, and the specific arbitrage opportunity.