@tothemoon-001
New week, new alpha!
Happy new week, my people! Let’s start strong with another DeFi 101 topic that sounds like a cheat code, but isn’t for the faint-hearted:
⚔️ Flash Loans: The Double-Edged Sword of DeFi
What’s a Flash Loan?
It’s a loan you take without collateral...
Yes, you read that right: no collateral 👀
But here’s the twist, you must borrow and repay within the same transaction (block).
What’s it used for?
💡 Arbitrage opportunities
💡 Collateral swaps
💡 Liquidations
Why is it powerful?
✅ Anyone can access it
✅ Opens up advanced DeFi strategies
✅ No upfront capital needed
But here’s the flip side:
⚠️ It’s also been used for exploits
⚠️ Flash loan attacks have drained millions from vulnerable protocols
⚠️ You need serious technical skill to pull them off effectively (or defend against them)
Flash loans are DeFi’s sharpest tool, deadly in the right hands, dangerous in the wrong ones 🧠
Web3 class continues later today 📚🧵
4 replies
0 recast
2 reactions