Towards Secure and Trustworthy Flash Loans: A Blockchain-Based Trust Management Approach.

Flash loan has become one of the most creative tools in DeFi industry. The explosive development of flash loan is due to its circumvention to borrower default risk and platform liquidity risk. But it also greatly reduces the cost required by the attacker to execute an attack. Hackers can use flash loans to obtain a large amount of disposable funds in a very short period of time, and then exploit the vulnerabilities in smart contracts to carry out attacks and steal a large amount of wealth. Therefore, a trustworthy framework has become one of the security measures that flash loan platforms must take. This paper makes a comprehensive study on flash loan, especially flash loan attack. Firstly, we briefly introduce the basic concept, platforms and application scenarios of flash loan, summarize the existing flash loan attack events and classify them. After that, we compare the existing credit scoring agencies. Then, we introduce the RFM model in marketing and improve it by combining the on-chain and off-chain behaviors of users. Finally, we propose a trustworthy architecture combining the improved RFM model with the role-based trust assessment model and periodic node behavior trust evaluation model. The future development of DeFi and Flash Loan is also analyzed.