DeFi is exploding at breakneck speed in recent days. As an early blockchain platform known to many as the “Ethereum of China”, Neo is not out of this race.
Recently, Neo Global Development announced the upcoming launch of Flamingo – a Full-Stack DeFi project running on Neo. Let’s learn about this promising project of Neo through this article!
What is Flamingo?
Flamingo is an interoperable, Full-Stack DeFi protocol built on the Neo blockchain.
Flamingo consists of five main components, including Wrapper – a cross-chain asset gateway, Swap – a liquidity provider, Vault – a one-stop asset manager, Perp – a perpetual contract exchange based on AMM and DAO – decentralized governance mechanism.
FLM is the governance token of Flamingo and will be distributed 100% to the community based on their participation in the platform.
Ingredients in Flamingo
Wrapper
Wrapper is a cross-chain asset gateway for Bitcoin, Ethereum, Neo, Ontology Network and blockchains based on Cosmos-SDK.
Users can wrap tokens like BTC (which will support native BTC later on), ETH, NEO*, USDT and ONT on the Neo blockchain as NEP-5 tokens (nETH, nNEO, nUSDT and nONT).
Wrapped NEP-5 tokens can also be redeemed for native tokens. More tokens will be added to the list as the project grows.
*Since NEO is currently UTXO-based, users need to wrap NEO into NEP-5 tokens in Wrapper for better use.
Swap
Is Flamingo’s AMM (Auto Market Maker), providing liquidity for wrapped assets (as listed above), FLM and other NEP-5 tokens.
Swap works based on the formula x * y = k, setting the price range for two tokens according to the available quantity (liquidity) of each token (similar to Uniswap).
In the Swap, users can trade token pairs (which are whitelisted in the early stages) or provide liquidity to a liquidity pool by providing equal tokens of the two tokens in the trading pair.
Liquidity Pool
A Liquidity Pool consists of a pair of NEP-5 tokens.
Users can create a new liquidity pool with 2 NEP-5 tokens or choose an existing pool to deposit equal amounts of tokens of the two tokens in the pair.
The Liquidity Providers can then receive LP tokens corresponding to the assets they have deposited into the pool.
LP Token
The LP Token represents the Liquidity Provider’s right to reclaim their assets and earn transaction fee income, proportional to their contribution to the pool.
100% of the transaction fees in the Swap will be distributed to Liquidity Providers, which means that the number of native tokens they can redeem from LP tokens will increase.
LP Tokens will be burned when Liquidity Providers withdraw their liquidity and get back the deposited NEP-5 tokens.
Trading
Instead of using the order book as on traditional CEXs, buying and selling will be done by on-chain liquidity pools in the Swap.
The transaction fee is currently at 0.3%.
Trading Router
When a user wants to trade 2 tokens but there is not enough liquidity in the pool or the pool involved has not been created.
Trading router will automatically search for an optimal trading route to execute trades for users.
Vault
Vault is Flamingo’s one-stop asset manager, integrating asset staking/mining and collateralized stablecoin issuance.
FLM will be released and users can claim FLM at will.
Vault has two main functions:
- Staking NEP-5 tokens: Users will receive FLM after staking the whitelisted NEP-5 tokens (wrapped tokens and LP Tokens) into the Vault.
- Mint FUSD: Whitelisted LP Token holders can mint stablecoin FUSD using staked LP Token as collateral and receive FLM.
Vault will be run in 3 phases:
- Phase 1 – September 23, 2020 – September 29, 2020 (tentative): During the “Mint Rush” period, 50,000,000 FLM will be distributed to users who stake the wrapped tokens included in the whitelist into the Vault.
- Phase 2 – September 30, 2020 onward (tentative): Along with the Swap launch, users can stake LP Tokens in the whitelist to receive FLM.
- Phase 3 – October 28, 2020 onwards (tentative): In addition to staking LP tokens in the whitelist, users can mint FUSD simultaneously by using the LP tokens in the whitelist as collateral and receive FLM.
FUSD
FUSD is a Flamingo-backed synthetic (synthetic) stablecoin, priced in USD.
Mint FUSD
LP Token stakers can mint FUSD with staked LP Token. The user can then use the minted FUSD at will.
Burn FUSD
FUSD holders can burn minted FUSD to unlock collateral.
Perp
Perp is an AMM-based perpetual contracts exchange.
Similar to Swap, traders can trade perpetual contracts with x10 leverage. Trader will use FUSD as margin and receive FLM. The price feed will be via Flamingo’s oracle contract.
KNIFE
In the long run, governance of Flamingo will be taken over by the community. Through the DAO, FLM holders can vote on important topics such as tokenomics, parameter configuration, and functionality improvements/changes. Voters will receive FLM for participating in governance.
The DAO will manage the following parameters but are not limited to:
- Wrapper: Asset whitelist, fee structure.
- Swap: Asset whitelist, fee structure.
- Vault: FLM distribution mechanism, whitelist/distribution of staking tokens, whitelist/configuration of stablecoin collateral.
- Perp: FLM delivery mechanism, fee structure.
There are two types of proposals:
- Flamingo Improvement Proposals (FIP): Proposers can submit suggestions to improve Flamingo’s overall system design, such as liquidity improvement plans, liquidation mechanisms, risk control strategies, etc.
- Flamingo Configuration Change Proposal (FCCP): The FLM Holder can determine the most important Flamingo metrics as well as the FLM release schedule.
Flamingo’s mechanism of action
Flamingo is a DeFi protocol cluster that integrates multiple modules to provide a comprehensive DeFi infrastructure.
You can join Flamingo with different roles or simultaneously as a trader, staker and liquidity provider.
Some highlights of Flamingo
Interactive abillity
Flamingo, based on Neo, launched Poly Network, a protocol that is interoperable with Ontology and Switcheo Network.
Through the Poly Network, the Flamingo protocol is connected to various heterogeneous blockchain networks. Such as Ethereum to Neo, Ontology and blockchain based on Cosmos-SDK.
Effective use of capital
Designed as a clustered DeFi protocol, Flamingo integrates a liquidity pool in Swap and a collateral pool in Vault.
Liquidity providers of FLM trading pairs in Swap can stake their LP tokens in Vault while minting FUSD at the same time.
Under this mechanism, capital efficiency more than doubled. Furthermore, liquidity providers can continue to use stablecoin FUSD as margin for leveraged perpetual trading in Perp.
Therefore, it can be seen that with Flamingo you can get higher capital efficiency and liquidity than isolated DeFi protocols.
Equality
FLM will be distributed 100% based on contribution to the platform with 0% pre-mining and 0% team reserve.
The distribution of FLM in the early stages will be decided by the Flamingo team and in the long run will be decided by the DAO through FLM voting.
Basic information about the Flamingo token (FLM)
- Token Name: Flamingo.
- Ticker: FLM.
- Blockchain: Neo.
- Contract: Will update.
- Token type: Governance.
- Token Standard: NEP-5.
- Total Supply: Not fixed.
- Circulating Supply: Not circulating yet.
Token Allocation
FLM will be distributed 100% to the participants based on their participation on the platform, 0% pre-mining, 0% held by the team.
Token Release Schedule
Early stage
Flamingo pre-scheduled the release of FLM for 13 weeks after the platform launch:
- Week 1: During “Mint Rush” (first week after Vault launch), 50,000,000 FLM will be distributed among staking pools during this period.
- Weeks 2-5: After Swap launch, 40,000,000 FLM will be distributed to liquidity providers during this period.
- Weeks 6-9: During this period, 30,000,000 FLM will be distributed among liquidity providers and FUSD mints.
- Weeks 10-13: After Perp launches, 30,000,000 FLM will be distributed among liquidity providers, FUSD minters and Perp traders.
Long-term
After the launch of the DAO, the original Flamingo team will no longer be in charge of the FLM release schedule. Instead, the team will propose a safe and sustainable operating plan for the community to consider. Community members voting on Flamingo governance proposals will receive 10% of the newly created FLM.
The expected distribution and release schedule (subject to change based on DAO decisions) for the long-term FLM is as follows:
Flamingo (FLM) exchange rate today
How to earn FLM?
In the first phase, FLM will be distributed for the following use cases (will be suggested and changed by the community after the DAO launches):
- Cross-chain asset staking (only during the first week-long “Mint Rush”).
- Staking LP tokens obtained from providing liquidity (After “Mint Rush”).
- Mint FUSD in Vault.
- Deposit stablecoin FUSD as margin to trade perpetual contracts.
- Participate in DAO governance.
FLM . Storage Wallet
FLM is a token according to the NEP-5 standard, so it will be stored on NEP-5-enabled wallets such as Neon Wallet, O3 Wallet, NEO Tracker Wallet,…
FLM . trading platform
Currently the project has not been officially launched, so let’s wait for more official information from Flamingo about where FLM is traded.
Flamingo’s Route
- September 23, 2020: Wrapper is released
- September 25, 2020: Vault phase 1 (Staking Neo + cross-chain assets)
- September 30, 2020: Swap launched, Vault phase 2 (Staking LP Token).
- October 28, 2020: Vault phase 3 (Stablecoin release).
- November 25, 2020: Perp is released.
- December 23, 2020: DAO launched.
The future of Flamingo
Booming in the past 3 months and has not shown any signs of cooling down with more than 3.28 billion USD of locked assets as of the time of writing.
DeFi is still a very potential playground for projects like Flamingo.
On the other hand, the presence of Wrapper will help Flamingo users access a huge amount of assets from many prominent blockchains.
Flamingo was born with the goal of becoming a springboard to accelerate the development of Neo’s DeFi ecosystem. Neo’s commitment to DeFi won’t stop at Flamingo.
In the future, they could launch lending, insurance and wealth management, the potential is limitless. And I firmly believe that Flamingo will be the center of this development.
Should invest in FLM?
Hopefully with the information I have given above, you have grasped the most overview of the Flamingo project as well as the FLM token.
Based on the above information, you can evaluate and decide for yourself about investment opportunities for FLM.
I will continue to monitor and update you with information about the Flamingo project as well as the FLM token when it is officially launched.
Disclaimer: This article is for informational purposes only about the Flamingo project and the FLM token and is not intended as investment advice. Cryptocurrency investment is a risky investment form, you only participate with the amount of capital that can be lost.
summary
Through this article, I hope you have had an overview of the Flamingo project and the FLM token – a launch in the DeFi race of the Neo blockchain. Let’s wait for the launch of Flamingo on September 23. 2020 is coming.
I will continue to update you with new project information, such as farming on Flamingo… wait for me to come back in the next post!
Source: What is Flamingo (FLM)? Learn about new DeFi products on Blockchain Neo Flamingo
– TechtipsnReview
