Flash loans are not inherently bad—they offer utility but require secure design. Developers should assume attackers can borrow unlimited capital and act in one transaction. Defenses include strong oracles, rate-limiting logic, and simulations in audits. Both users and builders must adopt a proactive, layered defense mindset.
Q1: What makes flash loans especially dangerous when abused?
A1: They let attackers act with large sums instantly and risk-free
Q2: Which of the following is a common cause of flash loan exploits?
A2: Weak oracles and logic assumptions
Q3: How can developers defend against flash loan attacks?
A3: Use time-weighted average prices and oracle feeds
Q4: Which signal might indicate a flash loan attack in progress?
A4: Sudden large loans and multi-protocol interactions in a single transaction
