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What is the purpose of a “flash loan” in the context of decentralized finance (DeFi)?

Lim How Wei
March 21, 2024

Marina Protocol is a global Web 3.0 tutorial platform with learning materials.

It provides beginners with easy-to-use content and advanced interfaces for activities.

Users can take part in Web 3.0 projects and get rewarded for their experiences.

You can download the app from the Google Play Store and create a new account.

To begin a quiz, open the Marina Protocol app, tap on “Learn & Earn”, and choose the correct answer.

In this guide, you’ll learn the answer to “What is the purpose of a “flash loan” in the context of decentralized finance (DeFi)?” in Marina Protocol.

What is the purpose of a “flash loan” in the context of decentralized finance (DeFi)?

Question: What is the purpose of a “flash loan” in the context of decentralized finance (DeFi)?

Answer: To borrow and repay a loan with a single transaction block.

Further reading

In the context of blockchain, what does “DAO attack” refer to?

Which blockchain platform is designed for the creation of decentralized applications (DApps) with a focus on formal verification and security?

What is the purpose of a “hard cap” in the context of an initial coin offering (ICO)?

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Lim How Wei

Lim How Wei is the founder of followchain.org, with 10+ years of experience in Social Media Marketing and 5+ years of experience as an active investor in stocks and cryptocurrencies. He has researched, tested, and written thousands of articles ranging from social media platforms to messaging apps.

Lim has been quoted and referenced by major publications and media companies like WikiHow, Fast Company, HuffPost, Vice, New York Post, The Conversation, and many others. One of his articles about the gig economy was quoted by Joe Rogan, who hosts The Joe Rogan Experience (the most popular podcast in the world), in the This Past Weekend podcast (the third most popular podcast in the world as of 2026) by Theo Von.

In his free time, Lim uploads personal finance videos on his YouTube channel, Lim Finance, to guide others on their financial journey. He also creates gaming guides, walkthroughs, solutions, and tips for the games he plays, helping players with their progression.