Multi-Step Execution

Multi-step execution refers to the process of running a sequence of interdependent operations within a single smart contract transaction. This allows for complex financial maneuvers like flash loan-based arbitrage, where borrowing, trading, and repaying occur in a single block.

By bundling these steps, the protocol ensures that no individual part of the process can be tampered with or interrupted. It allows for the creation of sophisticated financial products that would be impossible in traditional systems without intermediaries.

However, it also increases the complexity of smart contract code, making it more prone to bugs and security vulnerabilities. Proper testing and auditing are essential for protocols that rely on multi-step execution.

It is a powerful tool for developers but requires a deep understanding of blockchain mechanics.