Flash loans are often mentioned in attack postmortems, but what exactly are they?
Definition: A flash loan lets users borrow and repay funds within a single transaction, without any collateral.
How it works: Flash loans are not a vulnerability in themselves; in attacks, they are simply used to increase the amount of capital involved. The real issue usually lies in the attacked protocol’s price feeds or contract logic.
The lending protocol Aave behind $AAVE offers flash loans. Currently, 164.75.
Every potential return comes with risk. First, understand how much you could lose in the worst case.
Personal views only; this is not a recommendation to buy or sell.
Definition: A flash loan lets users borrow and repay funds within a single transaction, without any collateral.
How it works: Flash loans are not a vulnerability in themselves; in attacks, they are simply used to increase the amount of capital involved. The real issue usually lies in the attacked protocol’s price feeds or contract logic.
The lending protocol Aave behind $AAVE offers flash loans. Currently, 164.75.
Every potential return comes with risk. First, understand how much you could lose in the worst case.
Personal views only; this is not a recommendation to buy or sell.