Why Is a Successful Flash Loan Attack Considered a Single, Complex Transaction?
It is a single transaction because the entire sequence of operations is bundled into one atomic unit for execution on the blockchain. It is complex because it involves orchestrating multiple contract interactions ⎊ the loan contract, the DEX, and the target vulnerable contract ⎊ in a precise order to achieve the manipulation and profit before the repayment check.
The entire sequence is pre-calculated and submitted as a single, highly optimized smart contract call.
Glossar
Flash Loan Attack
Exploitation ⎊ A flash loan attack represents a market manipulation technique enabled by decentralized finance (DeFi) protocols, specifically leveraging the ability to borrow substantial capital without collateral requirements, contingent upon full repayment within a single transaction block.
Single Transaction
Transaction ⎊ Within cryptocurrency, options trading, and financial derivatives, a transaction represents a discrete exchange of value, fundamentally altering the state of an account or portfolio.
Flash Loan
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.