Flash Loans are uncollateralized lending powered by decentralized finance protocols. They help borrow any amount or assets without any collateral, depending on returning the liquidity to the protocol within the duration of a block’s transaction.
Flash loans allow you to borrow an unguaranteed amount with an obligation to pay back immediately in the same block transaction. If it is analyzed that the person taking a flash loan will not be able to repay immediately, then the process is reversed as if it never started in the first place. These flash loans are famous on the various DeFi protocols running on the Ethereum blockchain.
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