A flash loan is a type of under collateralized loan that lets a user borrow assets with no upfront collateral as long as the borrowed assets are paid back within the same blockchain transaction. It was popularized by Aave and has been implemented by many leading DeFi protocols.
How do GammaSwap Flash Loans differ from traditional Flash Loans?
GammaSwap lash loans are unique due to their flexibility in terms of repayment. Normally when executing a flash loan you have to repay the debt in the same token you opened the loan with. With GammaSwap, that is not necessarily the case.
GammaSwap enables a user to borrow any token from an LP pool and repay in a different token or different amount as long as the value of the Geometric Mean stays constant. This open a wide array of arbitrages that have not been available before.
A fee of 10 basis points is charged for each successful flash loan.