Will the pools be able to sustain demand?

I’m marking this as social since I’m not sure if it’s a right fit for Flashstaking. Feel free to move it where it’s more fitting. Also please excuse me if this has been addresses elsewhere, but I couldn’t find the answer, and the $100,000 Flashstaking competition video made me thinking about it.

I have a question regarding the pool. Currently XIO has around 5,000 citizens, not sure how many are active. As I understand the flashstaking and swap are going to depend on the pool provided by citizens. As most people will probably be looking to flashstake, how is the initial pool going to be provided and made sufficient to meet demand? It would mean swaps would affect liquidity hugely.

This was my concern too when looking at the round 4 video.

Perhaps there needs to be a uniswap back up that can trade tokens on the backend to ensure stable liquidity?

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This could be a viable option, though I would assume it would complicate things a lot. If it’s not planned already, this would mean more delays to the project. I don’t know if any of these pools connect to external sources to balance things.

As I understand, the way Uniswap and others work is by relying on professional traders who spot the difference in price, and selling their overvalued assets (say Eth), make profit, until price drops to same. In a large enough pool, this makes sense. But if the pool is small, and one can quickly shake things up, this can be exploited by pumping up price, and swapping it with non-pumped up token.

I’m not sure how accurate the simulation here to real world, since people here can’t bring tokens from outside. But that’s definitely something that needs serious attention. If it happens in live system, it will break trust in the system completely.

I am not sure if I understand what you mean, but if you are asking who would swap instead of flashstake, the easy answer is anyone who notices that they can buy cheaper at for example Uniswap and then swap in the FLASH dApp, thus creating/taking advantage of arbitrage.

If many for example Flashstake in the FLASH/XIO pool, then the APY for that pool will go down and likewise the rate at which you can swap XIO for FLASH will go up.
At some point it will become interesting to do that and then the APY will once again go up.

This is happening now and has been happening since launch.

edit: Just noticed now that this is one mother of a necro, but I will let the answer remain, since it was not answered.