Folks Finance
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  1. Architecture

Flash loan

Last updated 1 year ago

Flash loans are uncollateralized loans without borrowing limits in which a user borrows funds and returns them in the same group transaction. This feature is primarily useful for developers that want to do arbitrage or liquidations.

The implementation of the flash loan works as follows:

  • When requesting a flash loan, you must specify the index in the transaction group of the repayment transaction (must be after).

  • The repayment transaction must be coupled with an application call signaling the end of the flash loan.

  • The repayment amount must be equal to the flash loan amount plus the flash loan fee.

This innovative design allows flexible flash loans where one can request multiple flash loans from different pools concurrently.

Developers can find more information about how to use flash loans by visiting our .

SDK