Contributor, Benzinga
February 1, 2023
Flynt Finance
Overall Rating:
securely through Flynt Finance's website

Flynt Finance is a portfolio management platform that allows users to generate yields on their crypto assets. The return is achieved through an automated strategy called covered call, which is designed to make it easy for users to earn steady, risk-adjusted income from their crypto investments. Additionally, its USDC GMX:GLP delta-neutral strategy provides yields through the decentralized exchange GMX’s Liquidity Pool (GLP) (a basket of assets). Futures are also used to hedge the volatile assets to earn yield from GLP without price exposure to the volatile assets.

 

In the complicated and volatile world of cryptocurrency, Flynt Finance provides a robust solution to the complexities of portfolio management –  enabling users to generate sustainable yet high annual percentage yields (APYs) with minimal effort. The mission of Flynt Finance is to create a hub of financial products that are transparent, accessible and suitable for various risk appetites.

Best For
  • Passive crypto investors who are short on time
  • Flexible yield-generating strategies to meet individual risk tolerance
  • High sustainable APYs that seek to outperform BTC and ETH
Pros
  • Efficient portfolio management with no gas fees or chain switching costs
  • Strategies to suit all risk tolerance levels
  • Designed to weather bearish, bullish and sideways markets
Cons
  • Three automated strategies
  • Not available on the Apple App Store

Flynt Finance Ratings at a Glance

Product Offering
Customer Service
Security
Minimum Investment and Pricing
Mobile App
User Experience
Overall Rating

Flynt Finance Product Offering

Flynt Finance offers an effective and user-friendly model for generating sustainable yields on crypto investments through automated, interest-earning strategies. With minimal risk, anyone will be given an opportunity to amplify their financial gains within the cryptocurrency market.  Moreover, unlike many yield products that lack transparency and trust, Flynt Finance provides transparent and fully back-tested strategies for investors at all levels. 

The team behind Flynt possesses a depth of experience within finance and blockchain and has been building blockchain services together since 2015. As previous operators of a cryptocurrency derivatives exchange, the team behind Flynt is well-equipped to offer top-notch services for managing and protecting clients' cryptocurrency assets.

As it stands, Flynt Finance supports three different strategies; however, the team has stated that more structured products will be released in the near future. Its three unique strategies offer high APY estimates. Each strategy offers a different risk-to-reward ratio. The three strategies follow.

BTC Covered Calls x5

BTC Covered Calls x5 is Flynt’s most popular strategy, with over $800,000 in assets under management. The strategy’s average annual return ranges between 20-80% APY with an all-time high weekly yield of 1.375% which would translate to 103.48% APY if it stayed that high through the year. This strategy is designed for investors with a high risk tolerance and an itch for high APYs. 

This strategy works by selling options for Bitcoin, which are agreements that give the buyer the right to sell or buy the cryptocurrency at a specific price and specific time. The objective is to increase the number of BTC on a weekly basis by compounding the premium earned from selling weekly call options. Flynt is currently the largest retail options vault in the industry by traded weekly volume with about 200 Bitcoin traded a week.

When backtested from April 2019 to August 2022, the lifetime profit of this strategy is over 1,200%, or in other words, +358% per year on average. However, it is important to note that historical performance is not indicative of future performance. This strategy has the potential for high returns but comes with the risk of major or even total loss of the initial investment. So far this strategy has performed well through Bitcoin’s recent resurgence.

ETH Covered Calls +⍺

ETH Covered Call +⍺ is Flynt’s Ethereum-based options strategy, with over $150,000 in assets under management. In late January 2023, the strategy has yielded an average APY of roughly 10% over the last 4 weeks; however, it typically ranges between 10-25% throughout the year.

Compared to the BTC Covered Calls x5, this strategy is moderate risk. It aims to increase the number of Ethereum (ETH) on a weekly basis by compounding the premium earned from selling weekly call options. The backtested lifetime return over ETH Covered Call +⍺  combines standard covered call strategy with an additional upgrade. Researchers at Flynt Finance identified a lucrative pattern that occurs every Friday. On Fridays, decentralized options vaults (DOVs) sell calls en masse, which makes the prices of those options lower. In response, Flynt captures this inefficiency for additional yield. 

USDC GMX:GLP

The USDC GMX:GLP is a significantly lower-risk strategy offered by Flynt Finance. Before diving into how it works, it's important to understand what GMX:GLP means.

GMX is a decentralized exchange that allows users to trade and swap cryptocurrencies. The core feature of GMX is GLP – a liquidity pool of crypto assets. GLP consists of an index of assets used for swaps and leverage trading. Liquidity providers provide liquidity to the pool and are rewarded each time a user takes a trade or makes a swap. Flynt uses futures to hedge against directional exposure (the price of assets changing in either direction), which is why this strategy is less risky than the covered call strategies.  

In terms of the strategy, Flynt aims to capture the yield generated by GMX’s USDC-based GLP liquidity pool through complex risk-management strategies. At a high level, this process involves neutralizing the underlying delta exposure. 

Customer Service

Flynt Finance has strong, basic customer service, offering 24/7 hour support within its Discord and Telegram and direct email customer service on its website. In addition to this, Flynt Finance offers indirect support through Twitter, its official website and company documentation. These choices should be enough to solve most issues you may encounter as a customer.

Security

Flynt Finance partners with industry-leading asset custodial institutions, including BitGo and FireBlocks. All funds are protected with multi-wallet signature wallet infrastructure and multi-layer cold wallet protection.

Minimum Investment and Pricing

Flynt Finance’s pricing model is straightforward. Users are charged 20% fees based on the profit they make and 0% if there is a loss. 

Under this framework, Flynt Finance is incentivized to help users succeed. The profit generated by the company is tied directly to the performance of each user – Flynt Finance has a strong incentive to help you make smart investment decisions and achieve good returns.

Mobile App

Currently, Flynt Finance only supports an app for Android devices. The team plans to launch an official app for Apple devices in the near future.

The app has solid functionality, allowing users to choose their strategy, manage their portfolio in real time and send and receive cryptocurrency

User Experience

Flynt Finance simplifies the process of managing an active crypto portfolio – providing investors with high-yielding and sustainable strategies, with minimal effort required. Users can get started in less than a minute. All that is needed is know-your-customer (KYC) information, which involves submitting a government ID such as a driver's license. Here are a few additional perks offered by Flynt Finance that enhance the user experience. 

Lowest Risk, Highest Returns

Historical data of Flynt’s covered call strategy has demonstrated a Sharpe Ratio of 5.3 (above 3 is an excellent number). Sharpe Ratio is a way of measuring the performance of an investment. Generally speaking, a higher Sharpe Ratio is better, as it indicates that the investment performed well in relation to the amount of risk taken.

Compounding Yield

Flynt Finance systematically compounds yield every week to maximize returns for users. This feature accelerates the rate at which an investment grows over time –  as the investment earns a return, the return is then added to the initial investment, creating a larger base on which to earn future returns. On the other hand, compounding allows for a relatively small investment to grow into a large position over time.

Transparent 

As shown by the FTX scandal, transparency is one of the most important considerations in centralized finance (CeFi). With Flynt Finance, you can rest assured that all yields and strategies will be completely transparent and open for scrutiny. Moreover, Flynt Finance strives to strive to inform the risks involved in the strategies as clearly as possible.

Weatherproof Strategies

The most important perk of Flynt Finance is the weatherproof nature of each investment strategy. Investors can have peace of mind knowing that Flynt aims to provide tools to weather all storms whether the market is bullish, bearish or sideways.

Flynt Finance vs. Competitors

Flynt Finance competes with other companies that offer automated portfolio management strategies. A few of Flynt Finance’s notable competitors are Pionex, Coinrule and Cryptohopper. Although the strategies vary, all these platforms provide users with automated trading strategies with the aim to amplify their portfolio return.

Although Flynt Finance is notably smaller than these market leaders, it differentiates through its unique and transparent options-based strategies. Compared to Pionex or Cryptohopper for example, Flynt Finance offers fewer strategies; however, there are pros and cons to this feature. 

Advanced users may prefer the wide range of automated strategies offered by platforms like Cryptohopper whereas newer investors may enjoy the simplicity and limited range of options supported by Flynt Finance. 

Overall Rating

Overall, Flynt Finance is a solid portfolio management platform that provides investors with potentially lucrative and risk-adjusted yield-generating strategies. The platform meets the needs of investors at all ends of the risk spectrum, with a strong mix of fully back-tested and sustainable options-based strategies. 

Unlike the majority of competitors, Flynt offers unparalleled levels of transparency, allowing users to understand exactly where their yield is coming from and the risks involved. This feature is important in light of the FTX scandal, which has challenged the trust and validity of CeFi institutions.

Despite the platform’s many perks, Flynt Finance – because of its limited range of products – may not be appropriate for all investors, particularly more advanced or risk-tolerant investors. 

In an ideal world, it’d be great to see Flynt Finance deploy a wider range of strategies across a more diverse range of crypto assets. For newer or more passive investors, Flynt Finance still serves as an excellent tool for gaining a competitive edge in the cryptocurrency market.

Frequently Asked Questions

Q

How does Flynt Finance generate such high returns?

A

The yield is generated through a variety of strategies. Its highest APY strategy is its Bitcoin covered call strategy that sells call options each week. Its USDC strategy uses the decentralized exchange GMX’s Liquidity Pool to generate high returns in fees and hedges directional exposure with futures. It also rebalances positions more frequently to keep the hedge ratio of asset price neutral. The higher the GLP fee yields, the higher Flynt’s USDC APYs are.

Q

Can you lose money with Flynt Finance?

A

Although Flynt Finance’s strategies are fully back tested and have a history of growth, you could experience a partial or complete loss of your initial investment.

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