@driftlush
A flash loan is a type of uncollateralized loan that allows users to borrow assets from a liquidity pool without providing any collateral, as long as the loan is repaid within the same transaction block. Flash loans are popular in DeFi for arbitrage opportunities, collateral swapping, or refinancing positions. They are a powerful tool for experienced users but come with risks, as even minor errors in transaction execution can result in the loan failing and the borrower losing money.
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