Flash Loan

A flash loan temporarily takes cash from the pool without requiring collateral, as long as everything is paid back within the same transaction. Current will charge a flash-loan fee of 0.01%

When a flash loan is initiated:

1. The protocol creates a “hot potato” object as proof that a flash loan is active.

2. This hot potato records:

• The borrowed amount

• The flash loan fee that must be paid

By the end of the transaction:

1. The borrower must return the hot potato together with:

• The full loan amount

• The flash loan fee

1. If repayment does not happen in time, or the hot potato is not returned:

• The entire transaction reverts

• The loan is considered failed

Operational Constraints:

• A flash loan fails immediately if the requested amount exceeds the cash available in the pool.