What are Flash Loans?
Flash Loans are the first uncollateralized loan option in DeFi! Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.
If this does not happen, the whole transaction is reversed to effectively undo the actions executed until that point. This guarantees the safety of the funds in the reserve pool. Use-cases include arbitrage, collateral swapping, self-liquidation, and many more.
Flash Loan use case: Collateral swap of a MakerDAO Vault
A Flash Loan fee is collected from the total loan amount
Extra income for depositors
This is split (80/20)
Swapped to AAVE & burned
Reward to integrators
Got you excited?
Read our documentation and start using Flash Loans yourself!