🌊Liquid Stake (FlashLend)
The Flashstake Collateral of Staked Principal
Last updated
The Flashstake Collateral of Staked Principal
Last updated
FlashLend allows users to borrow against their FlashNFT, which opens up new possibilities for users to:
Mint fc-Tokens which can then be sold for other tokens on the open market
Buy any matured principal stake by spending fc-Tokens and FLASH tokens through a reverse dutch auction system
Borrowing is the act of depositing a FlashNFT into the Liquid Stake contract to mint fc-Tokens.
Each Time Vault Strategy has a principal token users deposit upon Staking or Flashstaking. fc-Tokens can be minted by depositing the associated FlashNFT into the Liquid Stake contract which will mint the corresponding amount of fc-Tokens that equal the number of principal tokens associated with the FlashNFT.
For example, if you staked 100 WETH into the rETH Rocket Pool strategy, you would receive a FlashNFT which represents your Stake. You can then deposit this FlashNFT into the Liquid Stake contract which would mint 100 fc-WETH tokens.
Note: The number of fc-Tokens is dependent on the number of principal tokens which exist within the Stake represented by the FlashNFT. This means the duration of a Flashstake does not change the number of fc-Tokens minted.
fc-Tokens can only be minted by Borrowing.
Paying back is the act of withdrawing your FlashNFT from the Liquid Stake contract by burning the exact amount of fc-Tokens that were originally minted when borrowing against it.
Note: This does not remove any principal from the FlashNFT.
For example, if you borrowed against a 100 WETH FlashNFT and minted 100 fc-WETH tokens, then to unstake the FlashNFT (to regain ownership of it and its principal), you would need to have 100 fc-WETH tokens in your wallet which would be burned.
Partial withdraw is the act of removing a portion of the principal token from the FlashNFT by burning the desired amount of fc-Tokens and proportionally required fTokens based on the existing Unstake Early logic.
Note: This can only be done by the original depositor of the FlashNFT.
Any FlashNFT that has been borrowed against will immediately go to Auction as soon as its original Flashstake duration has matured.
Auctions are first come first serve: the first transaction to successfully execute on chain with the required spend amount of fc-Tokens and FLASH tokens will acquire the FlashNFT at the auction and immediately own the FlashNFT and its principal tokens.
The amount of fc-Tokens required will always be equal to the amount not yet paid back for that FlashNFT.
The amount of FLASH tokens required will be based on the Reverse Dutch Auction rules.
The original depositor of the FlashNFT, the one who borrowed against it to mint fc-Tokens, can pay back the fc-Tokens at any time up until the FlashNFT has been acquired through auction. The original depositor will not have to pay any Flash premium.
Note: As soon as the FlashNFT has been acquired through auction, the original depositor will no longer be able to pay back fc-Tokens to regain ownership of the FlashNFT.
FlashNFT's can be purchased via a reverse dutch auction in exchange for the number of fc-Tokens originally minted as well as some Flash premium.
The starting auction premium for all FlashNFTs is 1,500,000 FLASH tokens. The auction price will reduce by 2.48 FLASH tokens per second, every second, for 7 days and 38 seconds, until the premium reaches 0 FLASH.
Example: Alice Flashstakes 100 WETH for 3 months to get upfront yield. 1 month later she chooses to deposit her FlashNFT into the Liquid Stake contract and mint 100 fc-WETH. 2 months later, she has not repaid the 100 fc-WETH, and the Flashstake is now matured, so it will immediately appear available at auction at the starting auction price of 1.5mil FLASH.
FLASH tokens paid by the auction winner will go directly to the Flashstake Treasury.
By holding a Flashtronaut NFT in your wallet, while participating in bidding in an Auction, you will receive a 10% discount on total FLASH tokens owed to win the auction.
Example: If the auction just started and the price is 1.5mil FLASH, a Flashtronaut holder will pay 10% less, 150k less, so would pay 1.35mil FLASH instead, to win the auction. If the auction price was currently 500k FLASH, a Flashtronaut holder would pay 450k FLASH instead.
By providing liquidity for fc-Tokens, your risk is more about time than money. The time risk is how long you would have to wait for an auction to become available to exchange your fc-Tokens for principal, as opposed to selling them on Uniswap.
Impermanent loss can happen as 1 token goes down in value relative to another. However, in this case, getting more fc-Tokens at the expense of less of the paired tokens means you are getting more fc-Tokens at a discounted price relative to the principal FlashNFTs. You could remove your liquidity at any time and bid on an Auction to exchange your fc-Tokens for principal.
John adds 1 WETH single sided Uniswap V3 LP to fc-WETH/WETH in a range of 0.95 to 1.00 WETH per 1 fc-WETH
Some period of time passes and other users have borrowed fc-WETH from their FlashNFTs and have sold fc-WETH. Let's assume the price goes down to 0.94 WETH per 1 fc-WETH.
John should now have at least 1.05 fc-WETH tokens, probably more due to LP fees.
1.05 fc-WETH can be used to win one or many Auctions whose total principal add up to 1.05 WETH. This assumes no FLASH tokens premium auction costs occur.
In this example, John added 1 WETH liquidity but acquired 1.05 WETH from auctions. He had no impermanent loss.