Intermediate
Blockchain & Web3
Q75 / 100
What is a "flash loan" in DeFi?
Correct! Well done.
Incorrect.
The correct answer is A) An uncollateralized loan that must be borrowed and repaid within the same blockchain transaction, or the entire transaction reverts
A
Correct Answer
An uncollateralized loan that must be borrowed and repaid within the same blockchain transaction, or the entire transaction reverts
Explanation
Flash loans exploit the atomicity of blockchain transactions: if the borrowed funds (plus fees) aren't returned by the end of the transaction, the entire transaction is reverted as if it never happened.
Progress
75/100