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What is a flash loan?

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A flash loan is a type of uncollateralized loan that is borrowed and repaid within the same transaction. These loans are popular in decentralized finance (DeFi) platforms and allow users to borrow large sums of cryptocurrency without needing to provide any collateral, as long as the loan is repaid in the same transaction. Flash loans are often used for arbitrage opportunities, liquidity provision, and other complex trading strategies in the crypto space.
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A flash loan is a type of cryptocurrency loan that enables users to borrow funds instantly and without collateral as long as the borrowed amount is repaid within the same transaction. Flash loans are typically used for arbitrage opportunities or other short-term trading strategies in the decentralized finance (DeFi) space. They have gained popularity due to their flexibility and the speed at which funds can be borrowed and repaid within a single transaction on the blockchain.

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