What is a Flashloan?

Ethereum and DeFi

Ethereum is the perfect foundation for DeFi for a number of reasons:

  • No one owns Ethereum or the smart contracts that live on it — this gives everyone an opportunity to use DeFi. This also means no one can change the rules on you.
  • DeFi products all speak the same language behind the scenes: Ethereum. This means many of the products work together seamlessly. You can lend tokens on one platform and exchange the interest-bearing token in a different market on an entirely different application. This is like being able to cash loyalty points in at your bank.
  • Tokens and cryptocurrency are built into Ethereum, a shared ledger — keeping track of transactions and ownership is kinda Ethereum’s thing.
  • Ethereum allows complete financial freedom — most products will never take custody of your funds, leaving you in control.

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