What is the Flash Protocol?¶
Flash is a permissionless protocol allowing everyone to stake $FLASH and earn instant upfront yield. Because of its permissionless nature, it will exist for as long as Ethereum does.
How is the Flash Protocol useful?¶
The main benefit for the users is that they are not required to wait in order to get their yield. Instead the yield is in their possession immediately. On the other hand, the yield can be redirected to either an externally owned account or a contract. This opens infinite amount of possibilities - from redirecting the instant yield to a friend or family member to a complex smart contract that can do further operations with it.
Is Flash Protocol fully permissionless?¶
Yes. The Flash Protocol Pools/Applications cannot be censored or whitelisted. Users cannot be censored or whitelisted. The XIO Team does not have the power to halt or edit the smart contracts in any way after they’ve been deployed. The contracts are not upgradeable, and there is no “backdoor” present in the code. Of course, XIO has no control over the contracts of ERC20 tokens placed in the Flash Protocol pools/applications. If a centralized token (e.g., USDC) were to blacklist an address or freeze all transfers, that would affect all USDC tokens everywhere, including those in the Flash Protocol.
Does Flash Protocol charge any fees at the protocol layer?¶
The users of the Flash Protocol will not be charged any fees. Instead, a percentage of the upfront yield will be “matched” and sent to a predefined Ethereum wallet. The match ratio can be as low as 0% and as high as 20%. That ratio can be changed via a 3 days time-lock function, so users can be aware if a change in the ratio is about to happen.
Is there a Flash Protocol token?¶
Yes, there is a token called $FLASH. The Flash Token does not have a fixed supply and the contract address is 0xb4467e8d621105312a914f1d42f10770c0ffe3c8. Users can use the $FLASH token in order to stake and earn instant upfront yield.
Does using Flash Protocol generate taxable events?¶
We cannot provide tax or accounting advice. Tax regulations are specific to jurisdiction where you or your company reside. For any legal or tax matters we recommend consulting your own attorney.
Are there risks in using Flash Protocol?¶
Flash Protocol smart contracts have been designed with security as a top priority. The core protocol code has been reviewed and audited by Solidify (of course, we cannot guarantee that bugs won’t be found in the future.)
The Flash Protocol contracts are not upgradeable (though other third-party Pool implementations might be), and there aren’t any backdoors.
Remember that the tokens held in any of the Flash Applications are also smart contracts - not controlled by Flash and may have their own risks. The Flash Protocol does not support non-ERC20-conforming tokens, but pools/applications may have been created that use them anyway.