What is the difference between a flash loan arbitrage and a flash loan attack? If I somehow find an opportunity to make a 1000% profit which crashes one or more token, will it be considered an attack? If anyone can explain the difference.
1 Answer
Flash loan arbitrage means that when the bot see an underpriced token, take a flash loan from Aave and do arbitrage between two exchanges and return the loan with interest. On the other hand, in flash loan attack, hacker take a flash loan from Aave to drain the pool. The difference is that in arbitrage, no one lose the money and it is just a way to make prices equal between exchanges. In flash loan attack, the project lose the money.
