@vinyl43
Flash loans are a feature in decentralized finance (DeFi) that allows users to borrow large sums of capital without collateral, provided the loan is repaid within the same transaction. While they can enable profitable arbitrage opportunities, they also pose risks, including market manipulation and vulnerabilities in smart contract code. Flash loan attacks have been used to exploit weaknesses in DeFi protocols, leading to significant losses. These loans can create rapid, temporary price movements, adding volatility to the market. Despite their potential for innovation, they highlight the importance of robust security in DeFi ecosystems.
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