What are flash loans in DeFi?

Similar to traditional loans, flash loans are expected to be paid back in full eventually. However, there are also marked differences.

In typical lending processes, a borrower loans money from a lender. The amount is expected to be paid back in full eventually, with interest, depending on the terms discussed between the lender and the borrower. 

Flash loans operate on a similar framework but have some unique terms and premises:

Use of smart contracts

A smart contract is a tool used in…

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