Stani Kulechov explained in three sentences:
The Aave protocol supported flash loans from launch: borrow and repay within a single transaction, with no collateral required.
In lending protocols, when the value of collateral falls below the liquidation threshold, liquidators repay part of the borrower’s debt and buy the corresponding collateral at a discount.
Flash loans are just a tool. In many attacks, they have been used to manipulate prices, so pay attention to a protocol’s price feed design when using it.
$AAVE 128.21（+1.64%）
Markets involve risk. Trade with caution.
The Aave protocol supported flash loans from launch: borrow and repay within a single transaction, with no collateral required.
In lending protocols, when the value of collateral falls below the liquidation threshold, liquidators repay part of the borrower’s debt and buy the corresponding collateral at a discount.
Flash loans are just a tool. In many attacks, they have been used to manipulate prices, so pay attention to a protocol’s price feed design when using it.
$AAVE 128.21（+1.64%）
Markets involve risk. Trade with caution.
