What are flash loans in DeFi?

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(Edited)

I need everyones definition.



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I'd never heard of a flash loan... sounds interesting. I didn't quite understand what it was until half way through your post... I'm still not fully sure, but it sounds like someone finds a discrepancy between prices of a coin, creates a smart contract then does a flash loan to take advantage of the difference where the flash loan more or less verifies the difference and accepts or denies the loan based on whether the transaction will go through profitably or not... did I understand it right?

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