A feature of Uniswap V2 where tokens are sent to the borrower before payment is verified. The borrower can use the tokens, then either return them or pay with the other token, all within a single transaction. If the K invariant is not satisfied at the end, the transaction reverts.
AMM
Flash Swap
Related terms in AMM
Automated Market Maker (AMM)
A smart contract that holds token reserves and enables trading without an order book. Prices are determined al...
Constant Product Formula
The pricing invariant x * y = k, where x and y are token reserves and k is a constant. When one token is bough...
Liquidity Pool
A smart contract holding paired token reserves that enables trading. Liquidity providers deposit equal value o...
Liquidity Provider (LP)
A user who deposits tokens into a liquidity pool to facilitate trading, earning a share of trading fees in ret...