Flash.trade- The fastest way to make profits in Trading!
A deep dive into flash.trade, built on the Solana blockchain
Hi guys,
This article is aimed at people who trade "blockchain assets" like cryptocurrencies, cross-chain assets, perpetual, spot trading options, etc on various centralized exchanges like Binance, coinbase, etc.
Although even if you are not a trader, this will serve as a very good information piece for you, anytime you think of trading.
A pat on your back for taking out time to learn something new, amidst this age of infinite distraction.
Have your favorite brew by your side and without any further adieu, let's get started!
Problems with Centralized Exchanges
Whenever you first enter trading, the first exchanges that come up are your centralized exchanges like Binance, Coinbase, etc. There are specific reasons for this. Their marketing is good. They have been in existence for a long time. Their User interfaces are good.
Centralized exchanges, while popular among traders for their ease of use and accessibility, come with several significant drawbacks that users should be aware of. Some typical problems associated with centralized exchanges:
Lack of Control Over Wallet Keys: One major issue with centralized exchanges is that users do not have direct control over their crypto wallet keys. You're entrusting your crypto assets to a centralized exchange, but you don't have direct control over your wallet keys. 😕 If the exchange suddenly shuts down, you could face some serious losses.
An example of a popular loss due to lack of access to wallet keys occurred with the collapse of Mt.Gox, once the world's largest cryptocurrency exchange. Mt.Gox reported the theft of 850,000 bitcoins due to security breaches, leading to its downfall. This incident highlighted the vulnerability of centralized exchanges where users do not have direct control over their funds and private keys, resulting in significant losses for investors
Security Vulnerabilities: Centralized exchanges have been frequent targets of high-profile hacks, resulting in the loss of substantial amounts of cryptocurrency. The centralized nature of these platforms makes them susceptible to security breaches and hacking attempts, putting your funds at risk.
Regulatory Restrictions: Many centralized exchanges are controlled by regulated entities subject to oversight by regulatory authorities. This oversight can lead to restrictions on trading certain tokens or serving users in specific jurisdictions, limiting the exchange's ability to support a wide range of assets and cater to all users.
Conflicts of Interest: Remember, exchanges are in it for the profits. Sometimes, their priorities may not align with yours. 😔. This conflict can lead to unethical practices such as market data manipulation, negatively impacting your experience and potentially causing financial losses.
Service Delivery Issues: Due to their profit-driven nature, centralized exchanges may prioritize profitability over user experience, leading to conflicts between exchange owners and users.
Ever tried reaching out for help and felt like you were talking to a brick wall? 😫 Some centralized exchanges lack adequate customer support, leaving users stranded when they need assistance the most.High Transaction Fees: Watch out for those sneaky transaction fees! 💸 Centralized exchanges can charge hefty fees, especially for large trades, eating into your profits.
Vulnerability to Price Manipulation: Sadly, some exchanges aren't as transparent as we'd like them to be. 😞 They might engage in price manipulation and other sketchy tactics that harm traders and market credibility.
Risk of Hacks and Security Breaches: Due to the centralization of user funds in one location, centralized exchanges are prime targets for cyber-attacks and hacking attempts, putting your assets at risk.
Now as you can see a lot of these problems are due to the fact that centralized exchanges are inherently profit-making entities. This is where the concept of Decentralized Exchanges like Flash comes into play.
What is Flash?
Flash.Trade is a decentralized asset-backed perpetuals and spot exchange on Solana that lets you trade with up to 100x leverage, low fees, and minimal price impact.
Flash’s trading activity is supported by a unique pool-to-peer model. Liquidity providers are rewarded with real yield generated from fees collected from trading activities. The protocol incorporates dynamic pricing via Pyth and a novel backup oracle system to ensure maximum uptime. The Flash Liquidity Pool (FLP) was bootstrapped by minting out one-of-a-kind 3D yield bearing NFTs that evolve as the holders interact with protocol. Additionaly, these NFTs act as trading accounts on Flash storing all the important stats and unlocks rewards for NFT holders.
Now the above paragraphs were stolen directly from the official documentation of Flash and I do get if you are not an everyday crypto person, few of the terms would have bounced through your head.
Let's break down some of the jargon in simple terms:
Decentralized Asset-Backed Perpetuals and Spot Exchange: Flash.Trade is a platform on Solana where you can trade perpetual contracts (contracts that have no expiry date) and spot contracts (contracts for immediate delivery) backed by assets, and it operates without a central authority controlling it.
Pool-to-Peer Model: This refers to a trading model where liquidity is provided by a pool of assets contributed by users, and trades are executed directly between traders without intermediaries.
Dynamic Pricing via Pyth: Pyth provides real-time financial market data. Flash.Trade uses this data for dynamic pricing, ensuring that asset prices reflect the most up-to-date information.
Backup Oracle System: An oracle is a mechanism that fetches and verifies real-world data for blockchain applications. Flash.Trade has a backup oracle system in place to ensure continuous operation and accurate pricing data, even in case of failures.
Flash Liquidity Pool (FLP): This is the liquidity pool on Flash.Trade where assets are deposited by liquidity providers to facilitate trading activities.
3D Yield Bearing NFTs: Non-Fungible Tokens (NFTs) are unique digital assets. Flash.Trade minted unique NFTs that evolve based on how holders interact with the protocol and earn yield from trading fees.
Trading Accounts: These NFTs also serve as trading accounts on Flash.Trade, storing important statistics, and providing rewards to NFT holders based on their interactions with the platform.
What makes Flash unique and Why should you trade on Flash?
Flash.Trade is a decentralized exchange (DEX) that rivals the experience users have on a centralized exchange (CEX). This is what makes it a "DEX with a CEX appeal".
There are specific other reasons that make it a very good choice for you:
Instant Fills with 0 Slippage, regardless of size
Trades are executed instantly without any price slippage, ensuring that you get the exact price you see when you place your order.
Low Fees for Large Orders
Even when trading large amounts, Flash.Trade offers some of the lowest fees in the cryptocurrency market, making it cost-effective for traders dealing with significant volumes.
Flash.trade charges a 0.10% fee for opening or closing a position on Crypto trades. The specific fee structure for every asset can be found here in the official documentation.
You can slam 6 figure orders with the cheapest fees in all of Crypto using Flash.
Comprehensive Trading Tools
Flash.Trade provides a range of tools like stop loss, take profit, and dynamic priority fees, along with backup systems for uninterrupted trading.
(source: Flash app)
Stop Loss/Take Profit 🛑💰:
With Flash.trade, you can set stop loss and take profit orders to manage your risk and secure profits automatically. A stop loss order protects you from big losses by selling your asset if its price drops to a certain level. Meanwhile, a take profit order lets you lock in gains by selling when the price hits a target.
Example: Let's say you buy a cryptocurrency. You set a stop loss order 5% below your entry price to limit potential losses. At the same time, you set a take profit order 10% above your entry price to cash in on gains if the price goes up.
Dynamic Priority Fees with Manual Overrides 💸:
Flash.trade adjusts fees based on market conditions and your trading behavior. You can manually change these fees to get the best prices for your trades, giving you flexibility and control.
Example: If the market is really volatile, you can tweak the priority fees on Flash.trade to ensure your orders get filled at the most competitive prices, especially during ups and downs.
Backup Oracles 🛡️:
Flash.trade uses backup oracles to keep trading going smoothly and provide accurate price data. These oracles give you extra reliability and make sure your trades aren't disrupted.
Example: If the main source of data has a glitch or goes down, Flash.trade switches seamlessly to backup oracles. This ensures trading keeps going without interruptions and you get the right prices.
2 Dedicated RPCs to Choose From 🔄:
Flash.trade gives you the choice of two dedicated Remote Procedure Call (RPC) endpoints. You can pick the one that works best for you, based on your preferences or network conditions, to optimize your trading.
Example: Let's say it's a busy trading time. You choose RPC endpoint A for faster order processing during peak hours. But if the network is shaky, you switch to RPC endpoint B for more stability.
By using these cool features on Flash.trade, you can smarten up your trading game, manage risk like a pro, fine-tune your fees, and enjoy smooth trading in a decentralized setup that's all about putting you in control. 🚀
Clear Rewards and Referral structure
Flash.trade has a cool rewards program called Flash Beasts. You earn Voltage Points by trading, adding liquidity, and bringing in new traders. As you collect more points, you level up your Flash Beast, unlocking bigger fee discounts and rebates.
Let's say you're a busy trader on Flash.trade. The more you trade, the more Voltage Points you earn. As you hit certain levels, your Flash Beast levels up, giving you even better discounts and rebates. It's unlocking rewards in your trading game. It's the gamification of the entire platform.
(Source: Official documentation on flash beasts , "LP" refers to liquidity pool and "VP" are voltage points)
As described in the above image, you can get
Fee Discounts up to 35% 💰:
Flash.trade gives you discounts on fees, up to a whopping 35%, based on how active you are on the platform. The more you trade and engage, the more you save on fees.
Referral System with Rebates up to 17.5% 🔄:
Flash.trade has a cool referral system. If you bring in new traders, you can earn rebates of up to 17.5% on their trading fees. It's getting paid for spreading the word about Flash.trade!
Best Fees for Leverage Exchange on Solana
Flash.Trade offers competitive fees for leveraged trading on the Solana blockchain, ensuring cost-effective trading.
Flash.trade offers leverage trading with up to 100x leverage, low fees, and minimal price impact, setting it apart as a cost-effective platform for traders.
User-Friendly Interface
Needless to say, they offer a very intuitive and engaging UI. Normally your DEXs are very poor in their user-facing products. The platform is frictionless, easy to understand, and have gamified features
The platform is designed to be fast and intuitive, providing a seamless trading experience for you.
Direct Trading from Wallet on Isolated Margin
With Flash.trade, you can trade directly from your wallet on isolated margin. This means you can execute trades while only risking the amount you want. It's having precise control over each trade's size and exposure.
By using isolated margin, you can strategically position yourself in the markets with specific risk management strategies, ensuring only risk that you intend to.
Steps: Accessing Direct Trading from Your Wallet on Isolated Margin:
Log in to your Flash Trade account.
Connect your wallet to the platform.
Look for the option to trade directly from your wallet on isolated margin.
Specify the exact amount you want to risk for each trade.
Execute your trades with precision and control, only risking the desired amount.
Active Tracking of Trading Volume and Fees
On Flash.trade, every bit of trading volume and fees generated by Liquidity Providers (LPs) is closely watched and recorded. This ensures fairness and transparency in fee distribution and trading activities.
If you're a Liquidity Provider on Flash.trade. Every fee generated from swaps, trades, and lending activities is tracked and shared among LPs based on their contributions. It's ensuring you get your fair share of the pie for helping keep the platform running smoothly.
(Learn more about providing liquidity here.)
How flash works on backend?
1. NFT Rewarding Mechanism:
Flash.trade, built on Solana, operates on a decentralized backend to provide users with a seamless experience while being fully decentralized.
The platform's NFT rewarding mechanism, the Flash Beasts, is a key component of this decentralized approach. The Beasts are unique NFTs that leverage DeFi to generate passive yield and act as identity accounts. They are designed to be fully on-chain, meaning that all benefits associated with the NFT, such as trading accounts through the referral mechanism, will transfer to the new owner if the NFT changes hands
The Flash Beasts also serve as a way for you to earn voltage points, which provide substantial fee discounts and referral rebates. These points are earned through various activities on the exchange, such as trading, providing liquidity, and referring new users.
The platform's innovative approach to rewarding users with NFTs that are fully on-chain and directly tied to the platform's benefits sets it apart from other platforms that may have endlessly farmable NFTs (like MOBOX) without any entry barrier.
The platform's rewarding system is structured to benefit both traders and liquidity providers. Traders earn voltage points based on their trading volumes, leading to fee discounts of up to 35%. Liquidity providers receive 70% of all revenue generated through trading activities, with over $250,000 already distributed in fees. Referring new users also plays a significant role in acquiring voltage points and leveling up a Beast, offering additional discounts and rebates.
2. DeFi x NFT META:
The fusion of decentralized finance (DeFi) principles with non-fungible tokens (NFTs) in Flash.trade's DeFi x NFT META concept represents a convergence of two cutting-edge technologies in the crypto space. By combining DeFi functionalities like yield farming, staking, and lending with NFTs, Flash.trade creates a unique ecosystem that offers users diverse opportunities for earning rewards and engaging with the platform.
This integration not only adds a layer of gamification to trading but also opens up new avenues for users to interact with digital assets in innovative ways, fostering a dynamic and engaging trading environment.
For example,
Flash.trade uses a pool-to-peer model where liquidity providers earn real yield from trading fees collected on the platform. This innovative approach ensures that traders' assets are used exclusively as collateral, differentiating Flash.trade from traditional margin-enabled exchanges like Kraken.
3. Trading Forex and Metals:
Flash.trade's expansion into trading traditional assets like Forex and metals broadens the platform's offerings and appeals to a wider range of traders seeking exposure to different markets.
By enabling you to trade these assets alongside cryptocurrencies, Flash.trade provides a comprehensive trading experience that caters to diverse investment preferences. This diversification not only enhances the platform's utility but also positions it as a one-stop destination for traders looking to access various asset classes within a decentralized environment.
4. Voltage Point System:
(Source: Official documentation on flash beasts , "LP" refers to liquidity pool and "VP" are voltage points)
The Voltage Point system on Flash.trade introduces a unique rewards structure that allows users to earn points through their trading activities, liquidity provision, and referrals.
These Voltage Points serve as a form of loyalty rewards that users(traders) can accumulate and utilize to level up their Beasts (NFTs) on the platform. By leveling up Beasts, traders unlock higher fee discounts and rebates based on their activity levels, incentivizing continued engagement and rewarding loyal users for their contributions to the ecosystem.
This system not only encourages user retention but also fosters a sense of community and competition among traders on Flash.trade.
In summary, these backend mechanisms collectively enhance the decentralized trading experience on Flash.trade by introducing innovative features like NFT rewards, DeFi integration, diverse asset options, and a dynamic rewards system that incentivizes user engagement and loyalty within the platform's ecosystem.
How to get started with Flash?
To get started with Flash.trade, a decentralized spot and perpetual exchange on Solana, follow these steps:
Access the Platform:
- Visit the Flash.trade website to access the trading platform.
Connect your Solana Wallet
If you have never used Solana before you will need a wallet like Phantom, Backpack, or Solflare.
Your wallet has a secret recovery phrase. Do not share it with anyone. Additionally, do not share your private key with anyone. Anyone who has access to your private keys or seed phrases can control your funds. The best practice is to record your seed phrase and store it in a safe physical location.
Assets
Currently, Flash.Trade supports the following assets found on Solana: wBTC, Ether, Sol, and USDC. All of these assets can be used to provide liquidity or trade.
A very small amount of Sol will be required for every transaction on Flash.Trade as it is an on-chain DEX.
Caution: The only User Interface will be found at flash.trade. Do not attempt to access the UI from any other link as it could be a phishing attempt and drain your assets.
Explore Trading Features:
- Familiarize yourself with the platform's features, including up to 100x leverage, zero price impact trading, isolated margin trading, and diverse token exposure.
Provide Liquidity:
- Consider depositing assets into Flash's Liquidity Pool to earn yield through trading and margin fees while providing liquidity to the platform.
Understand Risk Management:
- Learn about risk management strategies on Flash.trade, such as isolated margin trading, which allows you to control the size and exposure of each trade.
The Flash protocol has undergone a security audit done by Halborn and is going through another audit since the addition of new features. This audit can be found here.
The protocol did a one-of-a-kind economic audit to simulate the effects of multiple black swan events to understand the profitability of flash liquidity pool (FLP) and more. Details can be found here as well as the code repository used can be found here.
Engage with Flash Beasts NFTs:
- Explore Flash Beasts, unique NFTs that offer passive yield generation and additional perks through quests. Mint your beasts to unlock these benefits.
Stay Informed:
- Follow Flash.trade on social media platforms like Twitter and join their Discord community to stay updated on platform developments and new features.
By following these steps, you can begin your trading journey on Flash.trade, leveraging its advanced features, low fees, and innovative trading options on the Solana blockchain.
Conclusion
We learned a lot today about Flash. Centralized exchanges pose significant risks due to a lack of control over wallet keys, security vulnerabilities, regulatory restrictions, conflicts of interest, and high transaction fees.
Flash.Trade, on Solana, offers solutions to these issues with instant fills, low fees, comprehensive trading tools, clear rewards, and a user-friendly interface. With features like stop loss/take profit orders, dynamic priority fees, backup oracles, and direct trading from wallets on isolated margins, Flash.Trade empowers you with control, flexibility, and transparency.
I would encourage you to start exploring by following all the steps mentioned in "How to get started with Flash?". You can look over the references and learning resources mentioned below to get a better understanding of Flash.
Meet you in some other blog,
With ❤️
Dhruv.