Flash Loans

Flash Loans

Flash loans are a powerful tool that can be used to manage liquidity on a lending protocol. For instance, the flash loan feature allows you to perform:

• Collateral swaps

• Debt Swaps

• Leverage position

• Deleverage position (self-liquidation)

This means a user can use the liquidity tied in the lending platform to perform trading actions with no upfront funds, offering more usability to users. (If you want to know more, you can check here)