Flash loans are a type of unsecured loan in the decentralized finance (DeFi) space that are due and payable in the same transaction. They are made possible by smart contracts on blockchain systems like Ethereum. Flash loans are primarily used for arbitrage opportunities and collateral swaps, but they have also been used in attacks on DeFi protocols. While they offer opportunities for quick and pledge-free operations, they also come with risks, particularly in terms of security and competition. Continued development and improved security measures are necessary for flash loans to reach their full potential and become widely adopted in DeFi.



Other News from Today