A flash loan in DeFi refers to a type of loan that allows users to borrow assets without providing any collateral, as long as the borrowed amount is returned within the same transaction. Flash loans are typically used for arbitrage opportunities, liquidity provision, and other forms of quick, short-term trading strategies within decentralized finance protocols. The unique feature of flash loans is that they are only available within a single transaction block and must be repaid in full within the same transaction.
