# Flashloan Module Flash loans (also called One Block Borrows) are special transactions that allow the borrowing of an asset, as long as the borrowed amount (and a fee) is returned before the end of the transaction. These transactions do not require a user to supply collateral prior to engaging in the transaction. The innovation is that stablecoins given out in flash loans are minted during the flash-loan transaction and burnt at the end of it: this means that the size of the flash loans taken is not capped by an amount of liquidity in a pool but rather by a parameter chosen by contributors. Like done elsewhere, flash-loan transactions are only valid when the amount borrowed by the address taking the flash-loan is returned plus a fee at the end of the transaction. There could also be a cap on the size of the flash-loan taken. Flash loans of eUSD may serve different use cases like arbitrage between assets without needing the principal amount to execute the arbitrage. Overall, it improves the general market efficiency for eUSD. ![Flash Loans explained](/files/aff5bfc8fe2a7110bd9ef66d65b164c83c176912) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.eusd.xyz/products/how-it-works/flashloan-module.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.