What Is a “Re-Entrancy Attack” and How Does It Relate to Flash Loans?

A re-entrancy attack occurs when a contract function calls an external contract, and the external contract recursively calls back into the original function before it has finished executing its state changes. While not always directly linked, a flash loan can be used to supply the capital needed to trigger a re-entrancy vulnerability, especially if the vulnerability involves a withdrawal function that can be called multiple times before the balance is updated.

How Can Flash Loans Exploit CDP Mechanisms?
How Can Flash Loans Be Used for Arbitrage in DeFi?
What Is the Primary Risk Associated with Uncollateralized Lending like Flash Loans?
What Is the Role of a Fallback Function in Facilitating a Reentrancy Attack?
What Is a “Re-Entrancy Attack” in Smart Contracts?
What Is the Difference between a Flash Loan and a Traditional Uncollateralized Loan?
What Is a ‘Flash Loan’ and How Is It Used for High-Capital, Single-Transaction Arbitrage on DEXs?
How Does a Contract Manage Multiple Simultaneous External Calls?

Glossar