Everyone, this is something you need to understand: flash loans!
The borrowed funds, plus the fee, must be returned to the protocol before the transaction ends. Otherwise, the entire transaction is canceled, as if it never happened.
Flash loans can be issued without collateral because they rely on atomicity: the entire transaction either succeeds or is rolled back, so the borrowed funds can’t be taken without being repaid.
The lending protocol Aave behind $AAVE offers flash loans.
Save this for later and take your time reading 👇