Flash Loan

A Crypto Flash Loan is a type of loan that allows borrowers to borrow a specific amount of cryptocurrency for a very short period, usually only a few minutes. The loan is called a "flash" because it must be repaid quickly and cannot be extended. The loan is typically used for arbitrage trading or other high-speed trading strategies that require a large amount of capital for a short period. The loan is secured by collateral, and the borrower must have…

Flash loans are made available very short-term, usually only for a few seconds or minutes. They are called "flash loans" because they are made and repaid quickly, like a flash of light. They are made possible by smart contracts on blockchains that execute transactions automatically. Flash loans have become a popular tool for attackers in so-called "flash loan attacks" on decentralized finance (DeFi) protocols. In these attacks, the attacker borrows a large amount of cryptocurrency using a flash loan, manipulates…