Explain the Concept of "Flash Loans" in DeFi ⎊ Path

Explain the Concept of “Flash Loans” in DeFi.

A Flash Loan is a type of uncollateralized loan where the funds are borrowed and repaid within the same blockchain transaction. The loan is executed by a smart contract that guarantees repayment.

If the funds are not repaid by the end of the transaction, the entire transaction is automatically reversed. They are primarily used for arbitrage, collateral swaps, and liquidations.

How Does a Flash Loan Differ from a Traditional Smart Contract Loan?

What Is a ‘Flash Loan’ and How Is It Used for High-Capital, Single-Transaction Arbitrage on DEXs?

How Does a “Flash Loan” Differ from a Traditional Collateralized Loan in DeFi?

How Does an Attacker Profit from a Successful Oracle Manipulation Using a Flash Loan?

What Is the Relationship between a Flash Loan and Arbitrage in DeFi?

What Is the Primary Risk Associated with Uncollateralized Lending like Flash Loans?

How Do Flash Loans in DeFi Work and What Are Their Primary Use Cases?

How Can Flash Loans Be Used for Arbitrage in DeFi?