Sandglass

FLP.1 tokens from Flash Trade are now integrated with Sandglass. This integration unlocks new strategies for FLP holders to optimize their yield exposure.

What is Sandglass?

Sandglass is Solana's first pool-based yield trading protocol that splits yield-bearing tokens into their principal and yield components, enabling each to be traded separately. Unlike traditional DeFi where you're locked into both price and yield movements together, Sandglass creates independent markets for these components through sophisticated automated market makers (AMMs) designed specifically for yield trading.

FLP's Role on Sandglass

FLP tokens from Flash Trade serve as premium yield-bearing assets on Sandglass, offering unique advantages due to their diversified revenue streams from perpetual trading fees across multiple asset classes. This integration creates three primary opportunities:

• Yield Isolation - Trade FLP's yield independently from token price movements

• Risk Management - Lock in guaranteed returns or amplify yield exposure based on market outlook

• Enhanced Liquidity Provision - Earn additional fees while maintaining FLP yield generation

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FLP Yield Trading Strategies

Available Strategy Types

The platform offers three distinct approaches to FLP yield trading, each with specific risk profiles and return characteristics:

Risk-Averse Strategies:

• Fixed Yield (PT Tokens) - Lock in guaranteed APY, eliminate yield volatility

High-Conviction Strategies:

• Long Yield (YT Tokens) - Amplified exposure to yield increases, outsized returns potential

Balanced Strategies:

• Liquidity Provision (LP Tokens) - Earn trading fees while maintaining FLP exposure

Yield Trading Mechanics for FLP

When engaging with FLP yield trading, Sandglass executes a sophisticated token splitting mechanism. Your FLP.1 tokens are decomposed into Principal Tokens (PT) representing the underlying asset value and Yield Tokens (YT) representing future yield generation rights.

The Core Equation:

FLP.1 = PT + YT

The Compounding Effect:

• Original FLP earns trading fees from Flash Trade perpetuals

• PT tokens provide guaranteed returns independent of yield fluctuations

• YT tokens amplify exposure to yield movements with leveraged sensitivity

• Combined strategies can significantly exceed base FLP returns

When exiting positions, the process works seamlessly through the AMM with automatic price discovery based on market expectations of future FLP yields.

Here is a link to the Sandglass Protocol.

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FLP as Yield-Bearing Collateral

Trading Capabilities

FLP tokens serve as the underlying asset for sophisticated yield trading strategies with competitive terms. The isolated vault model ensures that FLP-backed positions don't create cross-contamination risks, providing portfolio flexibility.

Supported Trading Pairs:

• PT FLP.1: Fixed yield exposure

• YT FLP.1: Variable yield exposure

• LP FLP.1: Liquidity provision tokens

Key Parameters:

• Vault Maturity

• Underlying APY

• Total Value Locked

• Token Price

Strategic Applications

This yield trading utility allows users to maintain their FLP exposure while expressing specific views on yield direction and volatility. Users can effectively optimize their risk-return profile by separating price movements from yield generation and trading these components independently.

Here is a link to the Sandglass Protocol.

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Dual Rewards System

The Double-Earning Advantage

The unique advantage for Flash Trade users is earning rewards simultaneously across both platforms, creating a multiplicative effect on total returns while maintaining diversified risk exposure.

Sandglass Yield Benefits

Users can optimize their FLP returns through strategic positioning based on market outlook. Benefits include:

• Trading fees from yield arbitrage activity

• Enhanced capital efficiency through yield component separation

• Risk management through guaranteed yield options

• Amplified returns through long yield positions

Flash Trade Voltage Points (VP)

FLP deployed on Sandglass continues generating VP at the standard rate of 50 points per dollar of LP fees earned. The yield optimization effect means strategically positioned FLP can generate more efficient returns, resulting in accelerated VP accumulation.

VP Benefits:

• Higher VP totals improve FAF reward multipliers

• Optimized positions = better returns = more VP

• Enhanced epoch rankings and reward distributions

Here is a link to Sandglass & Flash Trade Leaderboard.

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Risk Considerations

Understanding the Risk Spectrum

While FLP yield trading offers enhanced flexibility and returns, it introduces additional risk factors that users must carefully consider before deploying capital.

FLP-Specific Risks

• Yield Dependency: FLP returns depend heavily on Flash Trade volume and market activity. During slow trading periods, yield generation may decline significantly.

• Platform Risk: Exposure to Flash Trade's perpetuals platform creates additional smart contract and operational risks beyond standard yield trading.

Yield Trading Amplification Effects

• Direction Risk: YT token holders face losses if FLP yields decrease below entry levels. Users must accurately predict yield direction for profitable YT positions.

• Time Decay: As vault maturity approaches, YT token values converge to accumulated yield, potentially creating time-sensitive exit requirements.

• Market Volatility: Crypto market conditions can simultaneously affect FLP values and trading volumes, creating correlated risk exposure across yield components.

Getting Started Guide

Prerequisites

Before engaging with FLP yield trading, ensure you have the necessary foundation for success:

• Hold FLP.1 tokens from Flash Trade

• Understand yield trading mechanics and directional risks

• Have clear market outlook on Flash Trade volume trends

• Familiarity with vault maturity systems and exit timing

Step-by-Step Implementation

Initial Setup

Initial Setup:

• Connect wallet to Sandglass platform

• Review current FLP.1 vault parameters and yields

• Assess yield outlook and select appropriate strategy

• Understand vault maturity date (November 4, 2025)

Position Configuration

Position Configuration:

• Choose strategy: PT (fixed), YT (long yield), or LP (liquidity provision)

• Review current rates: 24.76% fixed, 80.83% long yield, 37.61% LP

• Set position size and risk management parameters

• Execute transaction through Sandglass interface

Ongoing Management

Ongoing Management:

• Monitor Flash Trade volume trends affecting FLP yields

• Track position performance relative to underlying FLP APY

• Observe point accumulation across both platforms

• Plan exit strategy before vault maturity

Success Principles

Start Conservative: Begin with PT tokens or liquidity provision to understand mechanics before taking directional YT positions.

Monitor Volume: Flash Trade volume trends directly impact FLP yield potential and should guide strategy selection and timing.

Risk Management: Understand that YT positions can lose money if yields decline, while PT positions lock in current rates regardless of future performance.

Regular strategy review ensures positions remain aligned with changing market conditions while maximizing the dual rewards potential across both Flash Trade and Sandglass ecosystems.

Important Notice:

Yield trading involves significant risks including potential loss of principal. This information is for educational purposes only and should not be considered financial advice. Always conduct thorough research and never risk more than you can afford to lose.

Need Help?

For additional support or questions about using Sandglass, consult with the team on the Sandglass Discord. Remember: legitimate support will never ask for your private keys or recovery phrase.