---
name: simulating-flash-loans-55ab7223f491
description: 'Simulate flash loan strategies with profitability calculations and risk
  assessment across Aave, dYdX, and Balancer.

  Use when simulating flash loans, analyzing arbitrage profitability, evaluating liquidation
  opportunities, or comparing flash loan providers.

  Trigger with phrases like "simulate flash loan", "flash loan arbitrage", "liquidation
  profit", "compare Aave dYdX", "flash loan strategy", or "DeFi arbitrage simulation".

  '
allowed-tools: Read, Write, Edit, Grep, Glob, Bash(crypto:flashloan-*)
version: 1.31.0
author: Jeremy Longshore <jeremy@intentsolutions.io>
license: MIT
tags:
- crypto
- simulating-flash
compatibility: Designed for Claude Code
---
# Simulating Flash Loans

## Contents

[Overview](#overview) | [Prerequisites](#prerequisites) | [Instructions](#instructions) | [Output](#output) | [Error Handling](#error-handling) | [Examples](#examples) | [Resources](#resources)

## Overview

Simulate flash loan strategies across Aave V3, dYdX, and Balancer with profitability calculations, gas cost estimation, and risk assessment. Evaluate flash loan opportunities without executing real transactions.

## Prerequisites

1. Install Python 3.9+ with `web3`, `httpx`, and `rich` packages
2. Configure RPC endpoint access (free public RPCs via https://chainlist.org work fine)
3. Optionally add Etherscan API key for better gas estimates
4. Set RPC in `${CLAUDE_SKILL_DIR}/config/settings.yaml` or use `ETH_RPC_URL` env var

## Instructions

1. Simulate a two-DEX arbitrage with automatic fee and gas calculation:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 \
     --dex-buy uniswap --dex-sell sushiswap
   ```

2. Compare flash loan providers to find the cheapest for your strategy:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 --compare-providers
   ```

3. Analyze liquidation profitability on lending protocols:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py liquidation \
     --protocol aave --health-factor 0.95
   ```

4. Simulate triangular arbitrage with multi-hop circular paths:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py triangular \
     ETH USDC WBTC ETH --amount 50
   ```

5. Add risk assessment (MEV competition, execution, protocol, liquidity) to any simulation:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 --risk-analysis
   ```

6. Run full analysis combining all features:

   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 \
     --full --output json > simulation.json
   ```

## Output

- **Quick Mode**: Net profit/loss, provider recommendation, Go/No-Go verdict
- **Breakdown Mode**: Step-by-step transaction flow with individual cost components
- **Comparison Mode**: All providers ranked by net profit with fee differences
- **Risk Analysis**: Competition, execution, protocol, and liquidity scores (0-100) with viability grade (A-F)

See [`references/implementation.md`](references/implementation.md) for detailed output examples and risk scoring methodology.

## Error Handling

| Error | Cause | Solution |
|-------|-------|----------|
| RPC Rate Limit | Too many requests | Switch to backup endpoint or wait |
| Stale Prices | Data older than 30s | Auto-refreshes with warning |
| No Profitable Route | All routes lose after costs | Try different pairs or amounts |
| Insufficient Liquidity | Trade exceeds pool depth | Reduce amount or split across pools |

See [`references/errors.md`](references/errors.md) for comprehensive error handling.

## Examples

**Basic arbitrage simulation:**

```bash
python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 \
  --dex-buy uniswap --dex-sell sushiswap
```

**Find cheapest provider:**

```bash
python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py arbitrage ETH USDC 100 --compare-providers
```

**Liquidation opportunity scan:**

```bash
python ${CLAUDE_SKILL_DIR}/scripts/flash_simulator.py liquidation --protocol aave --health-factor 0.95
```

See [`references/examples.md`](references/examples.md) for multi-provider comparison and backtesting examples.

## Resources

- [`references/implementation.md`](references/implementation.md) - Provider comparison, strategy details, risk scoring, output modes
- [Aave V3 Flash Loans](https://docs.aave.com/developers/guides/flash-loans)
- dYdX Flash Loans
- Balancer Flash Loans
- [Flashbots Protect](https://docs.flashbots.net/flashbots-protect/overview)


---
Source attribution: jeremylongshore
Original project: https://github.com/jeremylongshore/claude-code-plugins-plus-skills/blob/ab85a061f7bcc039dac13ee193de7a4cd4388571/plugins/crypto/flash-loan-simulator/skills/simulating-flash-loans/SKILL.md
License: MIT
License information: https://opensource.org/license/mit
Original upstream instructions; downloaded from Dave AI.

## Upstream license notice

MIT License

Copyright (c) 2024-2026 Jeremy Longshore & Contributors

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all
copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.



# Dave AI resource metadata

Creator / publisher: jeremylongshore
Original project: https://github.com/jeremylongshore/claude-code-plugins-plus-skills/blob/ab85a061f7bcc039dac13ee193de7a4cd4388571/plugins/crypto/flash-loan-simulator/skills/simulating-flash-loans/SKILL.md
Attribution basis: Source repository record

Fields of work: Data & Analytics, Finance & Accounting, Marketing
Roles: Data Analyst, Financial Analyst, Growth Marketer, Marketing Analyst, Product Marketer
Specialties: API, Backend, Design, Frontend, Testing
Tools: Httpx, Python, Rich, Web3
Country applicability: Country not specified
Classification basis: Source catalog labels
Instruction SHA-256: 0323b884683b8a2f03b2207457f33dfc12ed288045955efa79e6e3ed884fe1ed
