Flash Loans
Borrow any amount with zero collateral - if you can't repay within the same transaction, the entire thing reverts as if it never happened. Used for arbitrage, liquidations, and collateral swaps.
Flash Loan Flow
1
Borrow
Request funds from pool
->
2
Execute
Run your strategy
->
3
Repay
Return principal + fee
->
4
Profit
Keep the difference OK
Profit Calculator
Flash Loan Fee (0.05%)
$500
Gross Profit
$5,000
Net Profit
$4,450
Strategy Details
DEX Arbitrage: Borrow USDC -> buy ETH on DEX A (cheaper) -> sell ETH on DEX B (more expensive) -> repay loan + fee -> keep profit.
This only works when the price difference exceeds the flash loan fee (0.05%) + gas costs. MEV bots do this thousands of times per day.