A flash loan is a special type of loan provided through the DeFi platform without any asset collateral from the borrower. Unlike traditional loans that require collateral, flash loans only require one main condition: the loan must be repaid in one transaction block.
If this condition is not met, the entire process will be canceled automatically. Because of this, flash loans are a unique and attractive tool, especially for traders who want to capitalize on opportunities without the risk of losing collateral assets.