Quote from: leea-1334 on July 07, 2021, 04:53:08 AM

Secure I do not know but unique,,, maybe.

But correct me if I am wrong guys but are flash loans just a way to try and make quick money like gambling/trading? I mean you borrow and pay back almost within minutes right? Which is how defi people got famous last year flash loaning and draining all the assets of the lenders?

Can OP explain:)

Flash loans may also be used to:

Arbitrage:
Traders can make money by looking for price discrepancies across a number of different exchanges. Say two markets are pricing pizzacoin differently. It's priced at $1 on Exchange A and $2 on Exchange B. A user can use a flash loan and call a separate smart contract to buy 100 pizzacoins for $100 at Exchange A, then sell them for $200 at Exchange B. The borrower then repays the loan and pockets the difference.

Collateral swaps:
Quickly swapping the collateral backing the user's loan for another type of collateral.

Lower transaction fees:
In a sense, flash loans roll what would normally take several transactions into one. Each transaction costs a fee so flash loans potentially mean lower fees.