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NFT Term

Flash Swap

Definition of Flash Swap from the NFTguild.com glossary.

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A type of decentralized finance (DeFi) transaction where a contract sends the user tokens before payment occurs with assets on the opposite side of the trading pair. The distinction between a flash loan and a flash swap is that a flash swap enables repayment with a different asset, whereas a flash loan requires repayment in the same cryptocurrency or token. Flash Swaps occur in a single Ethereum transaction.