Understanding Flash Loans: How They Work and What They’re Used For
Photo: UseTheBitcoin
Flash loans give the chance to crypto investors to borrow any amount of assets and return them immediately. Flash loans are meant for use in decentralized finance (DeFi); thanks to them, traders can make profitable arbitrage operations. Flash loans provide opportunities for traders to secure money when it is needed, but the trade has to be well-planned beforehand, as there are mistakes that may lead to huge losses. Apart from being used for making profits, flash loans may promote DeFi hacking schemes.
Source: UseTheBitcoin
