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Where does the yield come from? WHERE Flashnet pays BTC rewards from its own revenue. No rehypothecation, no lending, no fractional reserves. Flashnet doesn’t even issue USDB. Brale does. Brale is a US-regulated stablecoin issuer. See Who is Brale? for details.

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Two Separate Companies

Brale issues USDB and maintains the reserves. You hold their stablecoin. Flashnet operates the protocol and shares revenue with USDB holders. You use their protocol. Independent companies, working together.

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Where Rewards Come From

Flashnet generates revenue from protocol activity and converts a portion to BTC for daily distribution to USDB holders. Your reward rate (3.5-6% APY) scales with protocol usage. More usage, higher rate.

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Principal Safety

Your USDB is backed 1:1 by T-bills and cash equivalents held at regulated custodians. Flashnet never touches those reserves. If Flashnet disappeared tomorrow, your USDB would still be redeemable through Brale.

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Reward Sustainability

Rewards scale with protocol activity. High usage means more revenue and higher rewards. Low usage means lower rewards. The system balances itself.

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Growth Strategy

USDB rewards are a growth investment:
  1. USDB holders bring liquidity
  2. More liquidity improves execution
  3. Better execution attracts users
  4. More users generate more revenue
  5. More revenue funds more rewards
Rewards cost Flashnet money today to generate more revenue tomorrow. Uber subsidized rides to build network density. Banks offer sign-up bonuses to acquire customers. Flashnet pays BTC rewards to grow protocol usage. The difference is that these rewards are built into the protocol indefinitely.

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Brale’s Role

Brale runs a standard stablecoin business:
  1. You give Brale $1
  2. Brale gives you 1 USDB
  3. Brale holds your $1 in T-bills at regulated custodians
  4. When you redeem, Brale returns $1
This is how USDC and USDT work. Flashnet’s rewards are separate from this backing mechanism.

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