The Flashstake Protocol is a cutting-edge financial platform that allows users to effortlessly earn a fixed return on their deposited assets instantly and up-front. By utilizing Flash Strategies that integrate with renowned protocols like AAVE, Lido and Yearn, the protocol enables a dynamic marketplace of time that caters to the needs of different users, whether they prioritize immediate yield or are willing to wait for higher returns.
To participate in the Flashstake process, users first choose a Flashstake Strategy and then proceed to Flashstake by sending their principal tokens to the Flashstake Protocol. The Flashstake Protocol then transfers these tokens to the selected Flashstake strategy, which redirects the tokens to an underlying protocol, such as AAVE, Lido, or Yearn, where they begin to earn yield typically block by block. This process is referred to as staking, as detailed here.
The principal deposited into the Flashstake Protocol can be represented by a unique, non-fungible token (FlashNFT) that enables the transfer of stake ownership between wallets.
The upfront yield rate (APR) is determined by several factors, including the staked token quantity, stake duration, available yield in the related Flashstake Strategy’s yield pool, and the availability of more efficient yield redemption routes. All available options are evaluated to ensure the Flashstaker receives the highest possible APR, as described in the process referred to as FlashBurn, which is detailed here.
Flashstakers have the option to unstake early by returning a proportional amount of the instant up-front yield in the form of fTokens.
For instance, consider the case of Bob, who Flashstakes 1,000 USDC for 365 days and mints approximately 1,000 fUSDC, which he redeems for yield through the most efficient route. If Bob decides to unstake after 3 months, he must return 750 fTokens to withdraw his initial 1,000 USDC, as the number of fTokens required to be returned is directly proportional to the amount of time that has elapsed.
It’s important to note that when redeeming yield through any route, the fTokens will leave Bob’s wallet since fTokens are the entitlement to yield.
This is a high-level overview of the Flashstake Protocol and does not cover the detailed intricacies involved in the process of staking to mint fTokens or redeeming these for yield.
For a comprehensive understanding of the Flashstake Protocol, please refer to the core concepts linked below.