What is a Flash Loan?
ā” Flash Loan = uncollateralized loan in DeFi ā borrowed & repaid in 1 transaction.
How it works:
⢠Borrow funds
⢠Execute arbitrage/liquidation/trade
⢠Repay loan instantly
Benefits:
⢠No collateral required
⢠Instant access to large capital
Risks:
⢠Exploits & attacks (poor smart contract design)
Use cases:
⢠Arbitrage
⢠Collateral swapping
⢠Governance attacks (in rare cases)
ā
Flash loans = advanced DeFi tool ā handle with caution!
ā Have you explored flash loans?
#FlashLoans #DeFiAdvanced #CANProtocol $ZIL