Flash Loans
Uncollateralized loans that must be borrowed and repaid within a single blockchain transaction.
flash loansDeFi flash loansuncollateralized loansatomic transactionsarbitrage
Definition
Flash loans are a DeFi primitive that allows users to borrow assets without collateral, provided the loan is repaid within the same transaction. If the loan isn't repaid, the entire transaction reverts as if it never happened.
Flash loans enable capital-efficient operations like arbitrage, collateral swaps, and liquidations. They're a powerful tool for sophisticated DeFi users but require technical expertise to execute.
ByEnnen's DeFi.ly supports flash loans with identity-verified access, adding accountability while maintaining the capital efficiency of flash loans.
Examples
1.Arbitrage between DEXs
2.Collateral swaps to avoid liquidation
3.Self-liquidation for better rates
Related ByEnnen Products
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