Flash loans are already beginning to gain attention in the cryptocurrency community and may become even more popular in the future. There are many benefits, such as immediate liquidity and leverage trading, but they also carry risks.
What is a flash loan?
Flash loans are some decentralized finance relatively new forms of unsecured loans available to traders in the protocol. They are so-called because they are completed in a single transaction and the borrower does not have to insert collateral.
This makes it attractive for traders who take advantage of arbitrage opportunities and capital, but ay does not have the necessary collateral for traditional loans.
