How Can a Governance Attack Be Executed Using Flash Loans in DeFi?

A flash loan attack involves borrowing a massive amount of the governance token, often without collateral, executing a malicious governance vote, and repaying the loan all within a single blockchain transaction. The attacker uses the temporary voting power to pass a proposal that benefits them, such as draining a treasury or changing a fee structure.

The protocol must be vulnerable to this single-transaction manipulation.