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12/07/2023

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Why Are There No Flash Loan Attacks On Cardano?

Many hacks on the Ethereum platform have used flash loans.

Why Are There No Flash Loan Attacks On Cardano?

Many hacks on the Ethereum platform have used flash loans. An attacker can borrow a huge amount of funds without collateral, use it to make a profit, and then repay the loan in the same transaction.

In this article, we will explain why we don't see this kind of attack in Cardano's DeFi. You will understand one of the advantages of the UTxO model. The Principle Of Flash Loans A flash loan is a loan that is borrowed and repaid in the same transaction. It's one way to potentially make substantial gains without having to risk your own money. 

Most of us are familiar with normal loans. A lender loans out money to a borrower to be eventually paid back in full. A loan typically has to be paid back steadily over a period of months or years. 

Often lenders require borrowers to put up collat Read article: Why Are There No Flash Loan Attacks On Cardano?

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Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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