“Generating uninterrupted profits with borrowed capital” – The concept might be very familiar to you as it is nothing new in the world of crypto but what if I say no collateral is needed? This is definitely exciting and that is one of the reasons why the event when a flash loan arbitrage bot borrowed $200 million to generate $3 profit gained the limelight.
As the name suggests, flash loans are “fast”, but unlike their conventional counterparts in the crypto world, they don’t require any collateral. The significance of “flash” or “fast” in flash loan bots revolves around the settlement time. The loans are acquired and reciprocated in the same block or the transaction is reversed automatically.
Arbitrage is one of the most popular use cases of flash loans, making flashloan crypto arbitrage bot development a worthwhile investment. In this blog, we will discuss what flash loan trading bots are, how they are built, their essential features, business benefits, and the top 5 flash loan arbitrage bot development companies.