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What Is a Flash Loan and How Is It Often Used in MEV Strategies?

A flash loan is an uncollateralized loan repaid in one transaction, giving searchers instant capital to execute high-value MEV arbitrage or liquidation attacks.
Greeks.Live11.11.25

What Is a Flash Loan and How Is It Often Used in MEV Strategies?

A flash loan is a type of uncollateralized loan on a decentralized platform that must be borrowed and repaid within the same atomic blockchain transaction. It is a critical tool in MEV strategies because it allows searchers to instantly acquire massive capital to execute complex, high-value arbitrage or liquidation attacks.

The entire MEV strategy, from borrowing the loan to executing the front-run and repaying the loan, is contained in one block, making it a zero-risk, high-profit mechanism for the attacker.

What Role Do ‘Searchers’ Play in the MEV Ecosystem?
What Is the Impact of Transaction Finality on the Ability to Execute MEV Strategies?
How Does the MEV-Boost Mechanism Change the Relationship between Searchers and Proposers?
How Do Flash Loan Attacks Exploit Smart Contract Vulnerabilities?

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