building-blocks

Flash loan arbitrage involves borrowing assets from Aave V3, executing swaps on Uniswap V3/V4, and repaying the loan within a single transaction. You compose smart contracts to handle atomic borrowing, swapping, and repayment logic securely.

DeFi composability combines protocols like Uniswap and Aave into complex financial strategies. It works by chaining smart contract interactions, such as using borrowed assets from Aave to supply liquidity or swap on Uniswap.

Building an ERC-4626 vault involves implementing the standard interface for tokenized yield-bearing shares. You write smart contracts that accept asset deposits, issue shares, and deploy assets into strategies like Aave lending to generate returns.

Getting correct mainnet addresses requires overcoming stale training data issues by verifying protocol addresses on-chain. You can use fork testing examples to simulate mainnet conditions and validate Uniswap and Aave contract addresses before deployment.

Guardrails when composing Aave V3 flash loans include ensuring the loan amount plus fees is repaid by the end of the transaction. Smart contracts must handle revert conditions if swap slippage on Uniswap prevents profitable repayment.

You can compose Uniswap V4 hooks with ERC-4626 vaults by integrating custom swap logic within the vault strategy. This allows the vault to dynamically manage assets or execute specific trading behaviors when interacting with the DEX.