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The WETH10 project offers a flash minting feature.

This contract allows to flashMint an arbitrary amount of Wrapped Ether, unbacked by real Ether, with the condition that it is burned before the end of the transaction.

Is there an example of how this feature can be used?

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  • From a contract, obviously, since you have to do both (minting and burning) atomically. This answers your question of "how", so perhaps you want to ask for an example of why this feature should be used (i.e., where does become useful)? Oct 25 '20 at 9:15

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