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by BaseballPhysics 1518 days ago
And if you're wondering "but why??", if I'm not mistaken, one of the initial use cases for flash loans was in exploiting arbitrage opportunities, which tend to be transient with fairly low returns, which means you need access to large amounts of funds fairly quickly in order to take advantage of them.
1 comments

They’re used a lot to maintain uniform exchange rates across Defi projects etc. In theory allowing anybody to borrow a lot of tokens to exploit arbitrage opportunities means that the rates will converge simply due to market forces (because if one project offers a better rate than another it will quickly be arbitraged away).