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.
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.