Flash Loans

There is one unique instance where over-collateralization is not required to borrow on Kinza Finance - this instance is Flash Loans. Flash Loans are loans available to any Kinza Finance user who can take advantage of an off-platform product or service, or generate a profitable transaction, and require liquidity to do so. In this instance, a user can take out a Flash Loan and put the funds to use without collateral. The user, however, is then required to repay the loan in the same transaction as the original borrow transaction. To do a Flash Loan, the borrower will need to build a transaction contract that requests a Flash Loan, directs the liquidity to use, and then pay back the loan + interest within one transaction.

If a Flash Loan is programmed wrong, and the loan is not repaid, the network rejects the transaction as if nothing had occurred. This is possible because the entire process is a single transaction, and the blockchain had not yet reassigned ownership of the assets involved.

This is an advanced process and should be used only by skilled users proficient in programming transactions. More information on programming a Kinza Finance Flash Loan transaction will be available in the future.