grants users flexibility over their yield, allowing them to seemingly travel forward in time to receive their yield upfront. For example, a user could choose to flashstake 10 ETH into Lido as stETH for 365 days, and receive their yield of 0.46 wstETH immediately. But, where’s the catch then?
The catch here is that the tokens are still locked for the duration selected, meaning that in the above example, the 10 ETH tokens are locked for the selected duration of 365 days. Users can still withdraw their locked tokens though, but they will have to pay back the yield for the remaining portion of the lock duration. If a trader is anticipating a fall in yield, they could receive the yield upfront and then repay the remainder of the yield at a later date once the yield has fallen.
The yield eventually is still generated from the actual source of rewards, meaning in the above example, the rewards are still generated via Lido, just over the period in which the user’s tokens are locked. These rewards are then channeled to a reward pool for the stETH strategy, which will be used to pay out future upfront rewards.