[Example Help Post] Need help on Block 2, Aave lesson.

[Example Help Post] Need help on Block 2, Aave lesson.

by angyts eth -
Number of replies: 0

Hey guys! How are you? I was looking into the Aave lesson from Block 2 and wanted to ask what's the purpose of using flash loans? If I understand correctly, a flash loan is basically a loan which you can take out without depositing any collateral but you have to return it with interest in the same block. Isn't this inefficient? It almost sounds like withdrawing money from the bank that you don't own only to give it back to the bank! Am I missing something?

Thanks in advance.