What is a Flash Loan?
A flash loan lets you borrow any amount without collateral, as long as you repay it within the same blockchain transaction. If not repaid, the entire transaction reverts.
Use Cases
- Arbitrage opportunities
- Collateral swaps
- Self-liquidation
- Debt refinancing
Protocols
Aave and dYdX are popular flash loan providers. Fees are typically 0.05-0.09%.