New Yfarming strategy: Flash Staking

Hey, we just joined the community yesterday, we have no idea compared to big whales in this project but we think it’s a good idea to check out $xio and other projects that provide flash staking to their customers, we know nothing about coding but we think there’s potential in this new trend of flash staking. Few understand how lucky we are being able to invest in this project, if we can provide anything to this community, we will.
SuttonBrothers

4 Likes

What is flash staking? Please atleast discribe how this would work.

4 Likes

Flash staking is a new concept in which you stake your assets for a defined period of time and you get your interest upfront ( theoretically ) you can check out the project here: https://xio.network/ .
I’m not sponsored in any way by them, just want to help the community grow.

4 Likes

I like the concept but I’d doubt people would want to stake for more than a week. Lockups are not your friend.

2 Likes

imo the “up front” interest proposition is worthless, a rational investor would prefer to receive the interest at the end to benefit from further compounding. if they need some of the money “up front”, they could just invest a smaller amount.

4 Likes

I’m not sure how I feel about flash staking, but a rational investor may prefer his or her interest today rather than next year. The rational investor could immedately put that interest to use on day one.

3 Likes

Yes, they could immediately put the “up front interest” to work by NOT having the interest paid out up front and receiving it at the end of the investment term. It’s a mental accounting trick, nothing more.

1 Like

Flash staking is an excellent idea, I completely disagree with those above me.

You get your interest upfront -> you redeposit that in other high yield protocols.
Theoretically if you were able to get interest upfront equal to the initial investment (which isn’t hard to believe due to all those projects paying 101%+ APR), this would create a financial singularity where basically infinite money is created.

Do not take this lightly.

1 Like

Nope.

Instead of getting your interest up front to invest into other yield opportunities, you can invest a smaller amount into the first investment, and then use the remainder for the second investment.

The ONLY potential advantage is if these “flash staking” services offer fixed interest rates, but a much better implementation of fixed interest rates would just have the interest continue compounding within the position and paid out at the end.

True. But if you stake for the 100%+ APR then your funds would be locked for a year. If the value of the token decreases significantly during that year then you could still lose money. I can’t think of a strategy that includes flash staking and either increases yield or decreases risk.