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Flash loans, while useful, can be exploited to cause significant harm

OverWallet is a blockchain entry with a soft-landing reward system.

You can get point rewards by completing daily activities and missions like quizzes.

The Blockchain Learning Hub has daily quizzes to enhance your blockchain knowledge.

To get started, sign up using this link mobile.over.network/en/invite/3SDAUQX99B or use “3SDAUQX99B” as the invitation code.

When you sign up using the invitation code, you’ll get a 1,000 P bonus.

To begin a quiz, open the OverWallet app, select the “Missions” tab, and select “Daily quiz”.

In this guide, you’ll learn the answer to “Flash loans, while useful, can be exploited to cause significant harm” in OverWallet.

Flash loans, while useful, can be exploited to cause significant harm

Question: Flash loans, while useful, can be exploited to cause significant harm. Which vulnerability is exploited by attacks that instantaneously manipulate exchange rates using flash loans, triggering mass liquidations?

Answer: Price Oracle.

Further reading

Which of the following cannot be done with a flash loan?

What is the purpose of a “replay attack” in the context of blockchain?

Which blockchain feature allows the creation of a secondary blockchain that runs in parallel to the main blockchain?