Flash loans, a unique innovation in decentralized finance, provide uncollateralized borrowing for arbitrage, refinancing, or liquidations—all within a single transaction. This boosts market efficiency and liquidity, empowering users to execute profitable strategies.
However, critics argue that flash loans fuel speculative behaviors, often exploited for market manipulation or attacks on DeFi protocols, undermining trust and security in the ecosystem.
Are flash loans a necessary tool for liquidity or a risky feature that exposes DeFi's vulnerabilities? 💸🔗
