Flash Loans

Flash Loans on XOXNO let users borrow tokens without providing any collateral. The catch? The borrowed amount, plus a small fee, must be repaid within the same blockchain transaction. If repayment doesn’t happen, the transaction is reversed, as though it never occurred.

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How Flash Loans Work

• Executed and settled within a single block on the MultiversX blockchain.

• All actions—borrowing, using funds, and repayment—happen simultaneously.

• The receiver of the Flash Loan must be a smart contract located on the same shard as XOXNO’s contract.

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Advanced Use Cases

1. Arbitrage:

   • Exploiting price differences across platforms for profit.

2. Debt Optimization:

   • Swapping or repaying loans efficiently in one transaction.

3. Complex Strategies:

   • Leveraging temporary liquidity for advanced DeFi operations.

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Why Flash Loans Are Unique

• Risk-Free for the Protocol:

  • The blockchain ensures repayment within the transaction, or the loan fails.

• Technical Requirements:

  • Flash Loans are typically used by developers or experienced users due to the complexity of implementation.