# What Is a Flash Loan and How Does It Enable a Price Feed Attack? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## What Is a Flash Loan and How Does It Enable a Price Feed Attack?

A flash loan is a type of uncollateralized loan that must be borrowed and repaid within the same blockchain transaction. This allows an attacker to borrow a massive amount of capital without any upfront collateral.

The attacker uses the borrowed funds to execute a large trade on a DEX, causing a temporary, significant price deviation. The manipulated price is then fed to the vulnerable smart contract by the oracle, enabling the attack before the flash loan is repaid and the transaction is finalized.

- [How Does a “Flash Loan” Differ from a Traditional Collateralized Loan in DeFi?](https://learn.greeks.live/path/how-does-a-flash-loan-differ-from-a-traditional-collateralized-loan-in-defi/)

- [What Is a Flash Loan and How Is It Often Used in MEV Strategies?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-is-it-often-used-in-mev-strategies/)

- [What Is a “Flash Loan” and How Does It Relate to Market Manipulation Risks on DEXs?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-does-it-relate-to-market-manipulation-risks-on-dexs/)

- [How Can Flash Loans Be Used in Conjunction with an Oracle Attack?](https://learn.greeks.live/path/how-can-flash-loans-be-used-in-conjunction-with-an-oracle-attack/)

- [How Does a Flash Loan Differ from a Traditional Smart Contract Loan?](https://learn.greeks.live/path/how-does-a-flash-loan-differ-from-a-traditional-smart-contract-loan/)

- [What Is the Flash Loan Attack Vector in Liquidation?](https://learn.greeks.live/path/what-is-the-flash-loan-attack-vector-in-liquidation/)

- [How Can a Flash Loan Attack Exploit a Vulnerable Oracle Used by an Options Protocol?](https://learn.greeks.live/path/how-can-a-flash-loan-attack-exploit-a-vulnerable-oracle-used-by-an-options-protocol/)

- [Can a Centralized Exchange (CEX) Be Exploited Using a Flash Loan?](https://learn.greeks.live/path/can-a-centralized-exchange-cex-be-exploited-using-a-flash-loan/)

## Glossar

### [Uncollateralized Lending](https://learn.greeks.live/area/uncollateralized-lending/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Risk Exposure ⎊ ⎊ Uncollateralized lending within cryptocurrency, options, and derivatives markets represents an extension of credit without a corresponding asset held to mitigate potential losses, fundamentally altering counterparty risk dynamics.

### [Flash Loan](https://learn.greeks.live/area/flash-loan/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Mechanism ⎊ A flash loan is a unique, uncollateralized loan mechanism in decentralized finance that allows users to borrow assets for a very short duration, typically within a single blockchain transaction.

### [Price Feed](https://learn.greeks.live/area/price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Feed ⎊ A price feed is a continuous stream of real-time pricing data from various sources used to determine the fair value of an asset.

## Discover More

### [How Does an Oracle Price Feed Help Mitigate Arbitrage Opportunities and Impermanent Loss in Certain AMM Designs?](https://learn.greeks.live/path/how-does-an-oracle-price-feed-help-mitigate-arbitrage-opportunities-and-impermanent-loss-in-certain-amm-designs/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an Oracle Price Feed Help Mitigate Arbitrage Opportunities and Impermanent Loss in Certain AMM Designs?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Mechanism-Representing-Atomic-Swap-Liquidity-Pool-Convergence-Under-Quantum-Entanglement.webp)

Oracles align the pool's internal price with the external market, reducing arbitrage incentives and subsequent impermanent loss.

### [What Is a "Flash Loan" and How Does It Relate to Market Manipulation Risks on DEXs?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-does-it-relate-to-market-manipulation-risks-on-dexs/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a "Flash Loan" and How Does It Relate to Market Manipulation Risks on DEXs?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptualization-of-Decentralized-Finance-Oracles-With-High-Frequency-Market-Data-Acquisition.webp)

A flash loan is an uncollateralized loan repaid in one transaction; it can be used to manipulate DEX price oracles, posing a systemic risk.

### [Can a Flash Loan Attack Be Used to Manipulate a Synthetic Asset's Price Feed?](https://learn.greeks.live/path/can-a-flash-loan-attack-be-used-to-manipulate-a-synthetic-assets-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Flash Loan Attack Be Used to Manipulate a Synthetic Asset's Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Examination-of-High-Frequency-Trading-Needle-Contact-with-Teal-Liquidity-Pool-Barrier.webp)

Synthetic Asset x→Oracle Feed Pool Manipulation (Targeting the On-Chain Anchor)

### [How Does a "Weighted Average" Improve the Quality of a Price Feed?](https://learn.greeks.live/path/how-does-a-weighted-average-improve-the-quality-of-a-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a "Weighted Average" Improve the Quality of a Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Optics-on-a-Reflective-Surface-Modeling-Algorithmic-Hedging-Strategies-in-Digital-Asset-Markets.webp)

Assigns higher significance to data from high-volume, liquid sources, making the aggregated price more reflective of the true market.

### [How Does a 'Price Feed Aggregator' Help Defend against a Single-Point Manipulation?](https://learn.greeks.live/path/how-does-a-price-feed-aggregator-help-defend-against-a-single-point-manipulation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a 'Price Feed Aggregator' Help Defend against a Single-Point Manipulation?](https://learn.greeks.live/wp-content/uploads/2025/10/Angular-Bifurcation-Of-A-Digital-Asset-Hinge-Mechanism-Displaying-Polarization-Filters.webp)

Aggregators average prices from multiple sources, making it too costly to manipulate all of them simultaneously.

### [What Is Fractional Ownership and How Does Blockchain Enable It?](https://learn.greeks.live/path/what-is-fractional-ownership-and-how-does-blockchain-enable-it/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is Fractional Ownership and How Does Blockchain Enable It?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Ledger-Constructs-Intersecting-Aqua-Digital-Asset-Collateralization-Instruments.webp)

Fractional ownership is dividing an asset into shares; blockchain enables this efficiently through tokenization on a transparent ledger.

### [How Does an Attacker Profit from a Successful Oracle Manipulation Using a Flash Loan?](https://learn.greeks.live/path/how-does-an-attacker-profit-from-a-successful-oracle-manipulation-using-a-flash-loan/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an Attacker Profit from a Successful Oracle Manipulation Using a Flash Loan?](https://learn.greeks.live/wp-content/uploads/2025/10/Intertwined-High-Frequency-Trading-Algorithms-Visualized-Through-Lemniscate-Volatility-Surface-Projections.webp)

Inflate Price x→Over-Borrow Repay Loan x→Keep Profit (Arbitrage via Exploit)

### [How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Attacks on a Derivatives Contract?](https://learn.greeks.live/path/how-does-a-time-weighted-average-price-twap-oracle-mitigate-flash-loan-attacks-on-a-derivatives-contract/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Time-Weighted Average Price (TWAP) Oracle Mitigate Flash Loan Attacks on a Derivatives Contract?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Intersecting-Metallic-Blades-Representing-Decentralized-Finance-Protocol-Mechanism-Structure.webp)

TWAP averages price over time, smoothing out short-term manipulation from flash loans, preventing unfair contract execution.

### [What Is a 'Flash Loan' and How Can It Be Used in an Exploit?](https://learn.greeks.live/path/what-is-a-flash-loan-and-how-can-it-be-used-in-an-exploit/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a 'Flash Loan' and How Can It Be Used in an Exploit?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Digital-Asset-Leveraged-Hedging-Mechanism-On-Polished-Automotive-Casing-Surface.webp)

An uncollateralized loan borrowed and repaid in one transaction, often used for price manipulation exploits.

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**Original URL:** https://learn.greeks.live/learn/what-is-a-flash-loan-and-how-does-it-enable-a-price-feed-attack/
