Flashstake Set to Launch Upfront Yield Vault for GLP holders on Arbitrum
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TLDR:
- On March 28th, GLP holders will be able to claim up to 6-months of instant upfront yield using the Flashstake protocol
- Yields will start at 60%+ APY for early users
- The rest of this article will walk through how to Flashstake your GLP in 3 simple steps
Step 1) Buy GLP on GMX Website
GLP is a non-tradable token so the only way to attain it is through the GMX website.
Make sure you’re connected to the Arbitrum network.
Step 2) Connect to Arbitrum on Flashstake Dapp
Go to the Flashstake Dapp and connect to the Arbitrum network.
Step 3) Flashstake like a G…LP
Select how much GLP you want to flashstake and for how long. The longer you stake, the more your upfront yield.
- You can stake for as little as 1 minute and as long as 6 months
- You can unlock your GLP at any time by simply burning a linearly decreasing amount of fsGLP tokens. More on fsGLP later in the article.
Why would I want upfront yield on my GLP?
There are many reasons you may want your GLP yield upfront. Here are some of the most common reasons people Flashstake.
Lock-in a Fixed Rate.
Since you get the yield upfront, you are essentially locking in an interest rate on your assets for up to 6 months. This gives you more accuracy in projecting future earnings.
If you think interest rates on GLP will be lower than what you can get on GMX natively, Flashstake may be a good option.
Zero-Loss Leverage.
When you Flashstake, you are not taking out a loan. There is zero chance of getting liquidated and your upfront yield is not a debt to be repaid.
You can then use your upfront GLP returns to buy other crypto assets like ETH, ARB, or that new shiny NFT you’ve been wanting — all without the risk of your original principal.
For this reason, it is accurate to think of flashstaking as a mechanism for “Zero-Loss Leverage”.
If you want to get more exposure to certain assets but don’t want to sell your crypto, Flashstake may be a good option.
So, what’s going on with my GLP?
From multiple public audits to endless battle-testing, the Flashstake protocol has been developed with security of users’ assets as the top priority.
Before we get into the nitty-gritty, here are some Flash Fast Facts on the security and economic architecture of the protocol.
- User funds cannot get liquidated.
- User funds are always 100% collateralized.
- Users can lock for any amount of time down to the minute.
- Users know precisely when their principal will unlock.
- Users can unlock their principal at any time by repaying a portion of their upfront yield in the form of fTokens.
- Flashstake has zero admin functionality to control users’ funds or upgrade the protocol at any time.
- There is only one admin function named setMintFeeInfo which controls the Time Fee for $FLASH users.
- Outside of an unforeseen exploit to either the Flashstake protocol or the underlying yield source of a given strategy, it is technically impossible for users to lose their principal.
Show me GLP Architecture
Now, let’s get into an example of the GLP Flashstake strategy.
- User locks 100 GLP into Flashstake protocol for 6 months
- GLP keeps earning yield in GMX
- User mints 50 fsGLP tokens
- 50 fsGLP is swapped for GLP on Uniswap
- User receives GLP as upfront yield
What is fsGLP?
When performing a Flashstake, the user is giving up the rights to their future yield for yield today.
The future yield they are giving up is redirected to the GLP “Yield Pool”.
The “Yield Pool” is what gives fsGLP tokens an underlying value. At any time, fsGLP holders can burn their fsGLP to redeem yield from the Yield Pool.
fsGLP Liquidity Mining
Users can earn liquidity mining rewards by providing liquidity to the USDC/fsGLP pool on xToken. There are two campaigns currently live.
Once deposited, you will immediately start earning FLASH tokens on a block-by-block basis.
- You can claim FLASH rewards at any time.
- You can withdraw your liquidity at any time.
- The liquidity mining program is subject to a dynamically changing APR as users enter and exit the system.
- xToken liquidity campaigns inherently involve a higher impermanent loss risk — the upper range has a higher risk when compared to the lower range.
- If you want to learn how to add liquidity to xToken, go here.
What is $FLASH
Similar to how Uniswap v3 has a fee switch, Flashstake has a time switch. Each time someone uses the Flashstake protocol, a 0–20% time fee is taken and sent to the Time Vault.
The Time Fee is currently set to 5% and is only taken on the upfront yield, never the principal.
The only way to remove fees from the Time Vault is by depositing FLASH tokens. In short, this makes $FLASH the exclusive token for consolidating, arbitraging, and unlocking time fees from the protocol.
Just a Matter of Time.
That’s it.
Come March 28th you will have the power of GLP time travel, and the tools to get it done — all brought to you by Flashstake.
You can find more about the project on the Flashstake website, Twitter, and Discord.
