Flash Loans
What are flash loans? Do they apply to toad.network protocols? Understand why padswap exchange is NOT affected byt these mechanism
A loan in the DeFi ecosystem is a financial mechanism that allows a user to take a lend of an specific token by providing another one as a collateral. These have been implemented in several ways on different ecosystems, allowing the investors to put their investment into work without actually changing it.
A Flash Loan is new type of loan that does not require the user to provide a collateral to cover the loan. This uncollateralised loan that a user takes has a different constraint, it has to be returned to the lender before the full transaction ends.
Padswap Ecosystem does not implement any Flash Loan Mechanism hence these type of operations, flashloans, cannot be performed within the system.
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