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> For example flash loans allow uncollateralized loans for millions of dollars That's a bad thing, not a good one.
by TomSwirly 6y ago
> For example flash loans allow uncollateralized loans for millions of dollars
That's a bad thing, not a good one.
- rodiger 6y agoRead into it- it's not as scary as it sounds and it allows for more efficient aribtrage meaning tighter markets across services. The whole transaction is atomic meaning no risk for the lenders (lump sum must be paid back in a single transaction + small interest fee).
- marsrover 6y agoFlash loans are only executed if the entire transaction is valid monetarily. A transaction on Ethereum is like a database, if there are any issues it's rolled back.