January 1st, 2021 marks the launch of FLASH, our first official token creation from Blockzero Labs.
To help ensure that your initial Flashstake experience goes as smoothly as possible, we wanted to share three strategies that you could use during the mainnet launch.
Be sure to check out the video above for a step-by-step demonstration of how each of these strategies can be used on the dApp itself!
Feel like reading a summary blog instead? Well, we’ve got you covered down below. Read on to find out if you’re a…
Stakers - The people staking FLASH and earning instant yield (altcoins)
Stakers will most likely comprise around 80-90% of our initial user base for Flash. See the image to the right for an example of what you will encounter when staking on the dApp, day one.
Even if you didn’t participate in one of our many battle-tested betas, staking will be the simplest entry point into using the dApp. It’s as simple as taking your $FLASH and staking a set amount into the protocol for a predetermined amount of time.
At that point, new $FLASH are generated because of your stake, and they go over to a liquidity pool of your choice (for example, $DAI, $ETH, $LINK, etc…). Once you chose your desired pool, those alt-coins are sent to you immediately! Or, one can say, in a flash. It’s as simple as that! After the stake duration is complete, you can unstake your original $FLASH. So in the end, you’ll have received your immediate upfront yield in the form of an ERC-20 token of your choosing, and your initial $FLASH.
Makers - The liquidity providers who earn stake/swap fees (just like Uniswap)
Makers comprise the liquidity providers who earn stake/swap fees, much like on Uniswap. For a more in-depth breakdown of all the similarities and differences between Flash and Uniswap, check out this blog and explainer video.
Flash is a permisionless protocol, so anyone can create any ERC-20 token pairing that they want, and create a pool for that pairing. Makers will primarily be engaging with either the “pool” or “create” tabs on the Flash dApp (as seen in the adjacent images). The “pool” tab will allow users to deposit liquidity into a pre-existing pool (for example, $FLASH/$wETH), while the “create” tab is for users who want to create a new pool entirely (say $FLASH/$DOGE).
Every time somebody initiates a stake or a take, makers are rewarded. Unlike Uniswap, Flash maker rewards are dynamic – earning anywhere from .1%- 10% one each of those transactions. For sake of comparison, Uniswap, only offers a static fee of .3% per swap.
In terms of actual rewards for makers per every stake or take, all you do is take the Flash Percentage Yield (FPY) and divide it by five. Click here for a more in-depth technical one pager explaining how the FPY is calculated.
Takers - The arbitragers who balance the FLASH liquidity pools
Takers represent the arbitragers who balance the $FLASH liquidity pools. The “taker” can be represented by the “Swap” tab, as seen in the adjacent image. What they’re doing is filling up the makers pool – they’re swapping in altcoins, and actually earning $FLASH for doing so. They can choose to deposit or swap any token for $FLASH. Just like on Uniswap, you’ll perform a regular swap, and a percentage of that transaction will go directly to the liquidity providers.
Now why would anyone want to put in an altcoin and get $FLASH in return? Well, if they happen to notice that $FLASH is a different price on Uniswap than what it is inside the Flash dApp, they could then swap their $FLASH and earn the altcoins. For example, if you have $100 of $LINK, you could potentially swap it for $120 of $FLASH. Now, you’d have $20 extra dollars that you could, in theory, swap and keep doing whatever you want with!
Some other potential routes that takers can take (pun intended), is they can take their newly received $FLASH and:
- Stake it back on the dApp
- They could potentially pull it from the dApp altogether or…
- They can go straight to Uniswap and swap it
Summary & Socials
Hopefully this provided some clarity around the various intricacies of the Flashstake dApp, and it’s got you feeling excited to play around with it on launch day. Will you be a Staker, a Taker, or a Maker?
To reiterate, you’ll be able to claim your $FLASH in the claims dApp at 1pm UTC on New Years day (1/1/21).
After you’ve claimed your $FLASH, head on over to the FLASH dApp page and find your true calling as a Staker, Maker or Taker.
Be sure to check out our socials to stay connected with everything FLASH.