Aave is a decentralised non-custodial liquidity protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over-collateralised (perpetually) or under-collateralised (one-block liquidity) fashion.
What are Flash Loans?
Flash Loans are the first uncollateralized loan option in DeFi. Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.