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Flash loan

A loan that must be repaid under the protocol’s rules within the same atomic transaction.

PLAIN-ENGLISH DEFINITION

In more detail

A flash loan lets a transaction temporarily use assets without the usual upfront collateral for that repaid loan. The contract checks repayment before the transaction can complete; if it isn't met, execution reverts. This can support legitimate multi-step operations, but it doesn't mean free funds, and a failed included attempt can still cost gas.

IN THE WILD

How you might use it

One transaction borrows tokens, trades across two venues and repays the loan plus its required fee; without repayment, the operation reverts.

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By Crypto Dictionary · Published · Updated

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