An uncollateralized loan that must be borrowed and repaid within the same transaction. If the loan isn't repaid by transaction end, the entire transaction reverts atomically. Flash loans enable arbitrage, collateral swaps, and self-liquidation with zero capital. On Solana, Solend and MarginFi offer flash loans; they're also used in sandwich attacks.
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An uncollateralized loan that must be borrowed and repaid within the same transaction. If the loan isn't repaid by transaction end, the entire transaction reverts atomically. Flash loans enable arbitrage, collateral swaps, and self-liquidation with zero capital. On Solana, Solend and MarginFi offer flash loans; they're also used in sandwich attacks.
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Think of it as a market mechanic used to price, route, or move capital through liquidity apps.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Flash Loan (flash-loan) Category: DeFi Definition: An uncollateralized loan that must be borrowed and repaid within the same transaction. If the loan isn't repaid by transaction end, the entire transaction reverts atomically. Flash loans enable arbitrage, collateral swaps, and self-liquidation with zero capital. On Solana, Solend and MarginFi offer flash loans; they're also used in sandwich attacks. Related: Lending Protocol, Arbitrage
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A DeFi protocol that enables users to deposit tokens to earn yield and borrow tokens against collateral. Key Solana lending protocols include Solend, MarginFi, Kamino, and Save (formerly Solend v2). Lending rates float based on utilization (borrowed/deposited). Deposits receive interest-bearing receipt tokens representing their share.
The practice of profiting from price differences for the same asset across different markets. On Solana, arbitrage bots exploit price discrepancies between DEXs (e.g., SOL/USDC on Orca vs Raydium) or between spot and perpetual prices. Arbitrage is often executed via Jito bundles for guaranteed atomic execution and front-running protection.
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A token distribution method where there is no pre-mine, private sale, or insider allocation—all participants have equal opportunity to acquire tokens from the start. Fair launches aim to prevent concentrated ownership and VC dumping on retail buyers. On Solana, Pump.fun's bonding curve model approximates a fair launch, though early buyers still have a price advantage.
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A DeFi protocol that enables users to deposit tokens to earn yield and borrow tokens against collateral. Key Solana lending protocols include Solend, MarginFi, Kamino, and Save (formerly Solend v2). Lending rates float based on utilization (borrowed/deposited). Deposits receive interest-bearing receipt tokens representing their share.
The practice of profiting from price differences for the same asset across different markets. On Solana, arbitrage bots exploit price discrepancies between DEXs (e.g., SOL/USDC on Orca vs Raydium) or between spot and perpetual prices. Arbitrage is often executed via Jito bundles for guaranteed atomic execution and front-running protection.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.