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  1. Home
  2. /Glossary
  3. /Flash Loan
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defi

Flash Loan

An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction.

Definition

An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction. If you don't repay, the entire transaction reverts like it never happened. Flash loans enable complex arbitrage but have also been used in many DeFi exploits.

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Learn More About Flash Loan

GuideWhat is DeFi? Complete GuideBlogWhat Is a Flash Loan Attack in Crypto?

Related Terms

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

Arbitrage

Profiting from price differences of the same asset across different markets.

Smart Contract

Self-executing code stored on a blockchain that runs when conditions are met.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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