diff --git a/contracts/main/interfaces/IVaultLendingCallee.sol b/contracts/main/interfaces/IVaultLendingCallee.sol
new file mode 100644
index 00000000..e7d0eeb7
--- /dev/null
+++ b/contracts/main/interfaces/IVaultLendingCallee.sol
@@ -0,0 +1,11 @@
+// SPDX-License-Identifier: AGPL-3.0-or-later
+pragma solidity 0.8.17;
+
+interface IVaultLendingCallee {
+    function vaultLendingCall(
+        address caller,
+        uint256 debtValueToRepay, // [rad]
+        uint256 collateralAmountToLiquidate, // [wad]
+        bytes calldata
+    ) external;
+}
diff --git a/contracts/main/stablecoin-core/liquidation-strategies/FixedSpreadLiquidationStrategy.sol b/contracts/main/stablecoin-core/liquidation-strategies/FixedSpreadLiquidationStrategy.sol
index 35844461..189c27b6 100644
--- a/contracts/main/stablecoin-core/liquidation-strategies/FixedSpreadLiquidationStrategy.sol
+++ b/contracts/main/stablecoin-core/liquidation-strategies/FixedSpreadLiquidationStrategy.sol
@@ -10,7 +10,7 @@ import "../../interfaces/IPriceOracle.sol";
 import "../../interfaces/ILiquidationEngine.sol";
 import "../../interfaces/ILiquidationStrategy.sol";
 import "../../interfaces/ISystemDebtEngine.sol";
-import "../../interfaces/IFlashLendingCallee.sol";
+import "../../interfaces/IVaultLendingCallee.sol";
 import "../../interfaces/IGenericTokenAdapter.sol";
 import "../../interfaces/IStablecoinAdapter.sol";
 import "../../interfaces/IERC165.sol";
@@ -53,10 +53,6 @@ contract FixedSpreadLiquidationStrategy is CommonMath, PausableUpgradeable, Reen
     IPriceOracle public priceOracle; // Collateral price module
     IStablecoinAdapter public stablecoinAdapter; //StablecoinAdapter to deposit FXD to bookKeeper
 
-    uint256 public flashLendingEnabled;
-
-    bytes4 internal constant FLASH_LENDING_ID = 0xaf7bd142;
-
     uint256 public vaultLendingEnabled;
     //vaultLendingCall(address,uint256,uint256,bytes)
     //2eccf79a3186340e98628dede5e030b3259989a3589735768de8a79f946dc5f6
@@ -76,7 +72,6 @@ contract FixedSpreadLiquidationStrategy is CommonMath, PausableUpgradeable, Reen
         uint256 _collateralAmountToBeLiquidated,
         uint256 _treasuryFees
     );
-    event LogSetFlashLendingEnabled(address indexed _caller, uint256 _flashLendingEnabled);
     event LogSetVaultLendingEnabled(address indexed _caller, uint256 _vaultLendingEnabled);
     event LogSetBookKeeper(address _newAddress);
 
@@ -142,15 +137,10 @@ contract FixedSpreadLiquidationStrategy is CommonMath, PausableUpgradeable, Reen
         _unpause();
     }
 
-    /// @notice Sets the flash lending feature to enabled or disabled.
-    /// @param _flashLendingEnabled The value indicating whether flash lending should be enabled (1) or disabled (0).
+    /// @notice Sets the vault lending feature to enabled or disabled.
+    /// @param _vaultLendingEnabled The value indicating whether vault lending should be enabled (1) or disabled (0).
     /// @dev This function can only be called by the contract owner or governance.
-    /// @dev Emits a LogSetFlashLendingEnabled event upon a successful update.
-    function setFlashLendingEnabled(uint256 _flashLendingEnabled) external onlyOwnerOrGov {
-        flashLendingEnabled = _flashLendingEnabled;
-        emit LogSetFlashLendingEnabled(msg.sender, _flashLendingEnabled);
-    }
-
+    /// @dev Emits a LogSetVaultLendingEnabled event upon a successful update.
     function setVaultLendingEnabled(uint256 _vaultLendingEnabled) external onlyOwnerOrGov {
         vaultLendingEnabled = _vaultLendingEnabled;
         emit LogSetVaultLendingEnabled(msg.sender, _vaultLendingEnabled);
@@ -225,30 +215,6 @@ contract FixedSpreadLiquidationStrategy is CommonMath, PausableUpgradeable, Reen
                 info.collateralAmountToBeLiquidated - info.treasuryFees,
                 _data
             );
-            //below flow will be done in VaultStrategyHandler(..which can be _collateralRecipient like FlashLiquidator contract)
-            // address _stablecoin = address(stablecoinAdapter.stablecoin());
-            // _stablecoin.safeTransferFrom(_liquidatorAddress, address(this), ((info.actualDebtValueToBeLiquidated / RAY) + 1));
-            // _stablecoin.safeApprove(address(stablecoinAdapter), ((info.actualDebtValueToBeLiquidated / RAY) + 1));
-            // stablecoinAdapter.depositRAD(_liquidatorAddress, info.actualDebtValueToBeLiquidated, _collateralPoolId, abi.encode(0));
-        } else if (
-            flashLendingEnabled == 1 &&
-            _data.length > 0 &&
-            _collateralRecipient != address(bookKeeper) &&
-            _collateralRecipient != address(liquidationEngine) &&
-            IERC165(_collateralRecipient).supportsInterface(FLASH_LENDING_ID)
-        ) {
-            bookKeeper.moveCollateral(
-                _collateralPoolId,
-                address(this),
-                _collateralRecipient,
-                info.collateralAmountToBeLiquidated - info.treasuryFees
-            );
-            IFlashLendingCallee(_collateralRecipient).flashLendingCall(
-                msg.sender,
-                info.actualDebtValueToBeLiquidated,
-                info.collateralAmountToBeLiquidated - info.treasuryFees,
-                _data
-            );
         } else {
             IGenericTokenAdapter(ICollateralPoolConfig(bookKeeper.collateralPoolConfig()).getAdapter(_collateralPoolId)).withdraw(
                 _collateralRecipient,