Flash loans are a type of uncollateralized loan that must be borrowed and repaid within a single transaction. They are a powerful DeFi tool, enabling users to access large amounts of liquidity for a very short period of time, typically for purposes such as arbitrage, collateral swaps, or refinancing.
Key Features:
- Supports both BCH and token flash loans.
- Enforces a 0.09% fee on the borrowed amount.
- Repayment within the same transaction.
- Withdrawal mechanism for the contract owner.
For more details, see the FlashLoan.cash contract in this repository.
- Atomicity: The key property of flash loans is atomicity. The entire loan process i.e borrowing, using, and repaying the funds must occur within one transaction.
- No Collateral Needed: Unlike traditional loans, flash loans do not require the borrower to provide collateral, since the risk to the lender is mitigated by the atomic nature of the transaction.
- Use Cases: Flash loans are commonly used for arbitrage opportunities, self-liquidation, collateral swaps, and other advanced financial operations that benefit from instant, temporary liquidity.