Cryptocurrency Q&A
How to make money with crypto flash loans?
How to make money with crypto flash loans?
EthereumLegendGuard
Mon Sep 23 2024
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6
answers
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I don't understand this question. Could you please assist me in answering it?
6 answers
TaekwondoMasterStrengthHonorGlory
Wed Sep 25 2024
Once the loan is approved, the user must create an arbitrary logic for their transaction. This refers to a series of sub-transactions that the user has designed to generate a profit. These sub-transactions can include sales, swaps, and other financial operations.
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CryptoQueenBee
Wed Sep 25 2024
The key aspect of a flash loan is that the entire transaction must be completed within a single block on the blockchain. This means that the loan must be repaid in full, along with any transaction fees, before the next block is mined.
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Claudio
Wed Sep 25 2024
If the transaction is successful and results in a profit, the user keeps the difference between the profit generated and the transaction fees paid. However, if the transaction fails or the loan is not repaid in full, the user will incur a loss.
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ShintoBlessed
Wed Sep 25 2024
Flash loans are a unique financial instrument that operates within the decentralized finance (DeFi) ecosystem. They allow users to borrow large amounts of cryptocurrency without collateral, provided the loan is repaid within a single transaction block.
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EthereumElite
Wed Sep 25 2024
To initiate a flash loan, users apply for the loan on a platform such as Aave. Aave is a popular DeFi protocol that facilitates lending and borrowing of cryptocurrencies.
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