Flash Mint
Flash Minting allows users to mint VUSD within a single transaction, without collateral, provided the same amount is repaid by the end of the transaction.
This makes Flash Mint especially useful for advanced liquidation strategies or arbitrage.
Example: Liquidation via Flash Mint
Flash Mint VUSD
Deposit into the Stability Pool to help clear an under-collateralized position
Receive the liquidated collateral as a reward
Swap the collateral back into VUSD
Repay the Flash Mint within the same transaction
Keep the spread as profit
By design, Flash Minting supports the system’s solvency during periods of high liquidation demand — even when the Stability Pool lacks sufficient VUSD.
It’s an open, permissionless mechanism that incentivizes arbitrageurs to help maintain system stability.
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