A Flash Swap is a feature that allows users to borrow tokens temporarily from a liquidity pool without upfront collateral. This process typically occurs within the same transaction block, meaning the borrowed tokens must be returned or swapped back before the transaction concludes.This mechanism is often used for arbitrage, allowing traders to capitalize on price differences across various exchanges. For instance, a user can borrow tokens to buy an asset at a lower price on one platform and sell it at a higher price on another, profiting from the price discrepancy.Flash Swaps rely on smart contracts to automate the borrowing and repayment process. If the terms aren’t met—like returning the borrowed amount—the transaction will fail, ensuring that liquidity providers are protected from losses. This feature provides traders with a powerful tool, enabling high-speed trading strategies without needing significant upfront capital. However, it requires a solid understanding of market conditions and risks, as the process operates under tight time constraints.