> For the complete documentation index, see [llms.txt](https://docs.virtue.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.virtue.money/flash-loans.md). # Flash Loans Virtue supports flash loans for assets that are accepted as collateral within the protocol — such as IOTA and stIOTA. Flash loans let users borrow these assets without upfront collateral, as long as the borrowed amount is returned within the same transaction. They are mainly used for arbitrage opportunities, including: * Price discrepancies across DEXs * VUSD depegging events **Example: Arbitrage when VUSD trades below $0.95** 1. Flash loan $10,000 worth of IOTA 2. Use the borrowed IOTA to buy discounted VUSD on a DEX (e.g. $0.95), receiving approximately 10,526.3 VUSD 3. Redeem 10,526.3 VUSD through the protocol for $1 worth of IOTA per VUSD → receive $10,526.3 worth of IOTA 4. Repay the original flash loan of $10,000 in IOTA 5. Profit the \~$526.3 difference ``` This is a simplified example and does not include protocol fees such as the flash loan fee or redemption fee, which may affect final profitability. ``` All of this happens in a single transaction, with no capital or collateral needed. Flash loans are permissionless and available for any collateral-eligible asset in Virtue. They help reinforce the VUSD peg while enabling capital-efficient strategies — all executed in a single atomic transaction. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.virtue.money/flash-loans.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.