Quick explainer: Why don’t flash loans require collateral?
The borrowed funds, plus fees, must be repaid to the liquidity pool before the transaction ends. Otherwise, the entire transaction is reverted, as if it never happened.
Flash loans themselves aren’t a vulnerability; in attacks, they’re simply used to amplify the amount of capital available. The real problem is often the price source or contract logic of the protocol being attacked.
The lending protocol corresponding to $AAVE , Aave, offers flash loans. Current price: 159.75.
Don’t invest with borrowed money—your mindset can lead you to make poor decisions.
Just listen; don’t buy based on this. Make your own judgment.
The borrowed funds, plus fees, must be repaid to the liquidity pool before the transaction ends. Otherwise, the entire transaction is reverted, as if it never happened.
Flash loans themselves aren’t a vulnerability; in attacks, they’re simply used to amplify the amount of capital available. The real problem is often the price source or contract logic of the protocol being attacked.
The lending protocol corresponding to $AAVE , Aave, offers flash loans. Current price: 159.75.
Don’t invest with borrowed money—your mindset can lead you to make poor decisions.
Just listen; don’t buy based on this. Make your own judgment.