Ever heard of borrowing millions without collateral and repaying it in seconds? Welcome to the world of flash loans in DeFi! (1/9)🧵

Access native liquidity across any chains

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2/ Flash loans let you borrow crypto instantly, use it for quick trades or actions, and repay it all in one transaction. If you can’t repay, it reverses—no risk for lenders!

3/ Powered by smart contracts, flash loans automate borrowing, actions, and repayment in one blockchain transaction. A financial Swiss Army knife for DeFi pros.

6/ Benefits of flash loans:

- No upfront capital needed
- Complex strategies in one go
- Open to anyone with know-how

5/ Beyond arbitrage, flash loans enable:

- Refinancing loans at better rates
- Liquidating undercollateralized positions
- Swapping collateral without closing positions

DeFi’s toolbox grows!

4/ Example: Spot ETH at $1900 on Exchange A, $2000 on B. Flash loan:

1. Borrow 100 ETH
2. Sell on B for $200k
3. Buy on A for $190k
4. Repay + fee
5. Keep $9.8k profit

Done in the second!