PrimeFi
  • Introducing PrimeFi
  • PrimeFi Features
    • Key Features of PrimeFi
    • Rewards distribution and NFT Integration
  • Lend
    • How to Deposit?
    • Collateral
    • pTokens
    • Withdraw
  • Borrow
    • How to Borrow
    • Borrowing Eligibility
    • Health Factor
    • Loan Repayment
    • Liquidations
    • Flash Loans
    • Interest Rate Model
  • Prime Liquidity Provider (pLP)
    • pLP Overview
    • Ways of Building the Position
      • Manual Positions
      • Flik Positions
    • Maximum APR by asset
    • pLP Pools
    • Sustaining Eligibility Status
    • Bounty for Disqualification
  • Manage PrimeFi
    • Statistics for pLP
    • Vesting Emissions
    • Locked pLP
    • Protocol fees
    • Relock pLP
    • Auto-compound
  • PRFI
  • PrimeFi Reward System
    • Introduction
    • General User Rewards
      • Lenders
      • Liquidators
    • Advanced User Rewards
      • LP Provider Rewards
      • PRFI NFT Holders Rewards
  • Governance
  • Contracts
    • Lending & Borrowing
      • Flik Flow
      • Stargate Borrow
    • Staking
      • Flik Flow
      • Rewards
      • Bounty System
  • Audits
  • PrimeFi Youtube Tutorial
  • Testnet Faucets
    • 1.-Hyperliquid Test
    • 2.-Base Sepolia
    • 3.-Arbitrum Sepolia
    • 4.-BNB Chain Testnet
    • In addition
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  1. Borrow

Flash Loans

Available on Mainnet

PreviousLiquidationsNextInterest Rate Model

Last updated 6 months ago

Designed primarily for developers with the requisite technical expertise, flash loans provide the capability to borrow available assets without the need for collateral, provided that the liquidity is restored to the protocol within a single block transaction.

In the realm of decentralized finance (DeFi), flash loans serve as a tool for executing intricate financial transactions. For instance, a user might opt for a flash loan to conduct a trade on a decentralized exchange (DEX) or engage in arbitrage across various DeFi protocols.

Despite their utility in enabling swift and convenient access to significant capital, flash loans entail a heightened level of risk due to their short-term nature. Should the borrower fail to repay the loan within the designated timeframe, a substantial penalty may be imposed.

To engage in a flash loan, a contract must be constructed to request the loan. Subsequently, the contract needs to execute the specified steps and repay the loan along with accrued interest and fees, all within the confines of a single transaction.

For a more in-depth understanding, refer to the flash loan procedure inherited from Aave within their .

documentation