Everything You Need to Know About ⚡Flash Loans⚡

The latest craze in DeFi is flash loans. Here's how they work.

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⚡ GONE IN A FLASH ⚡ Flash loans are one of the newest and most important innovations in decentralized finance (DeFi). They allow traders to borrow cryptocurrency without putting up collateral. They’re called flash loans because they’re paid back fast — instantly, in fact — and they give traders the leverage they need to make quick and dirty profits. What could go wrong? A lot, as it turns out. Just ask bZx, a platform that lost close to $1 million last week to attackers who leveraged flash loans to make (or steal) cash instantly.  As a subscriber to our Markets Daily newsletter, you probably have a lot of questions about this esoteric frontier of finance. To get a handle on it, check out our plain-English guides to DeFi's new fount of rewards — and risk. READ the deep dive by William Foxley LISTEN to the easy-to-understand explainer from the Markets Daily podcast WATCH CoinDesk’s animated primer EXTRA CREDIT: Nathaniel L. Whittemore asks if it’s exploitation season in DeFi on The Breakdown podcast, distributed by CoinDesk. Follow us on Twitter @coindesk and visit  CoinDesk.com  for breaking news, insights and analysis on the technologies that are shaping the future of money.  This email was sent by: CoinDesk 250 Park Avenue South New York, NY, 10003, US Want to change how you receive these emails? update your preferences or unsubscribe from this list