@bunnysjunkies
A flash loan is a type of uncollateralized loan offered in DeFi platforms, where users can borrow assets for a very short period—usually within a single transaction. The key feature of a flash loan is that it must be repaid by the end of the transaction. If the borrower does not repay the loan, the transaction is reversed. Flash loans are often used for arbitrage opportunities, debt refinancing, or to exploit price differences across decentralized exchanges. They offer users the ability to access large amounts of capital without needing collateral, but they also carry risks, particularly for less experienced users, as they can be used for market manipulation if exploited maliciously.
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