Uncollateralized loan repaid within the same transaction, often used in DeFi arbitrage

Uncollateralized loan repaid within the same transaction, often used in DeFi arbitrage.

Flash loans allow users to borrow large amounts without collateral, as long as the loan is repaid within the same blockchain transaction. If repayment fails, the entire transaction is reverted. They're used for arbitrage, collateral swaps, and sometimes exploits.