FLP Tokens

FLP tokens are index-style tokens that represent ownership shares in Flash Trade's multi-asset liquidity pools. Each FLP token tracks a diversified basket of crypto assets while earning yield from perpetual trading activity.

What FLP Tokens Represent

When you hold FLP tokens, you own a proportional share of the entire pool's assets, not the specific tokens you deposited. A user depositing BTC receives exposure to the full pool composition: roughly 24.50% JitoSOL, 3% SOL, 22.50% BTC, 5% ETH, and 45% USDC (when at target ratios).

FLP.1 TOKEN BALANCES

TOKEN	Target ratio	Min ratio	Max ratio
USDC	45%	25%	55%
BTC	22.50%	15%	40%
JitoSOL	24.50%	14%	45%
ETH	5%	2%	12%
SOL	3%	0.10%	45%

FLP.3 TOKEN BALANCES

TOKEN	Target ratio	Min ratio	Max ratio
USDC	40%	25%	80%
JUP	20%	10%	40%
JTO	20%	10%	40%
KMNO	5%	2%	20%
RAY	10%	5%	40%
PYTH	2%	1%	10%
W	3%	1%	10%

Note:

The revenue generated by the liquidity pools will be given out separately to LPs in USDC and the price of FLP token would only reflect the price of the underlying assets only, hence FLP LPs returns will, in the long run, be similar to an index token that generates passive yield.

Token Mechanics

• Asset Exposure:

  • FLP tokens automatically rebalance your exposure across the target ratios. Pool composition shifts dynamically based on deposits, withdrawals, and price movements of underlying assets.

• Index Behavior:

  • Like traditional index funds, FLP tokens provide diversified exposure to multiple assets through a single token, removing the need to manage individual asset allocations.

• Net Asset Value (NAV):

  • Token prices reflect the current market value of underlying assets plus accumulated trading profits, minus any losses paid to profitable traders.

Token Types

Flash offers two token variants with different reward mechanisms:

• FLP: Auto-compounds all earnings into token price every hour

• sFLP: Requires manual claiming of USDC rewards every hour

Both represent identical pool ownership but handle rewards differently.

Pool Utilization System

• 90% Maximum Utilization:

  • Ensures liquidity remains available for withdrawals

• Automatic Rebalancing:

  • Pool composition adjusts as positions close and new liquidity enters

Revenue Integration

FLP tokens capture value from:

• All perpetual trading fees (70% share to LPs)

• Margin fees from leveraged positions

• Trader losses to the pool

• Liquidation penalties

Contract Address

For contract addresses and mint information, see sFLP & FLP Mints.

Key Characteristics

• Counterparty Exposure: Token holders serve as counterparty to all trader positions

• Market Correlation: Returns follow underlying crypto asset performance

• Fee Sensitivity: Dynamic minting/burning fees based on pool balance

• Yield Generation: Passive income from Flash Trade's trading ecosystem