TamilBTC Global
Background
The protocol is a NEO Foundation project brought to life through the NEO Global Development (NGD) team and is meant to expand NEO’s vision of a smart economy. Flamingo offers an all-round service to its users by taking care of back end and front end issues under one platform.
What is Flamingo Finance
Flamingo is a full-stack DeFi protocol that is interoperable and powered by the NEO blockchain. Operations on the network are divided into distinct components to enable a smooth operation for the platform. Currently, the system supports access using the NeoLine wallet for NEO assets, Metamask wallet for Ether (ETH) holders, and Cyano plugin wallet for ONT token holders.
Flamingo’s 5 Key Components
Swap
This handles automatic on-chain market making. The module interacts with wrapped tokens on the parent blockchain to provide liquidity. Uniswap, a leading DeFi platform, inspires its approach to automated market making. Liquidity providers converge on a pool by providing tokens with NEO’s standard, NEP-5.
Wrapper
Flamingo uses this component to power inter-chain interaction of blockchain assets. Wrapper works with Bitcoin, Ethereum, NEO, and Ontology, where tokens from these platforms can be ‘wrapped’ by being converted to NEP-5 tokens and used on the NEO network.
Vault
The Vault module provides an interface for managing, mining, and staking assets. Also, it handles the issuance of collateralized stablecoins. Vault stakers earn rewards in the form of the platform’s native token, FLM (more on the token later).
Vault is projected to go live anytime between September 25 and 29 in 2020.
Perp
Perp is derived from the word perpetual and is designed with perpetual contracts in mind. It uses automatic market-making to power a perpetual contract exchange that deals with a host of assets. The exchange has a leverage of up to 10X for both long and short positions.
Decentralized Autonomous Organization (DAO)
In the decentralized world, everything should be distributed, including governance. Flamingo uses DAO to allow for optimum community involvement in the running of the platform. Issues that fall under DAO include token economics, functionality changes, and parameter configuration.
Generally, DAO has a say in things happening on the Wrapper, Swap, Perp, and Vault modules.
Flamingo Finance Token (FLM) and Flamingo USD (FUSD)
FLM is Flamingo’s native currency dedicated to governance. It’s built using NEO’s NEP-5 standard. Interestingly, the token does not have a cap on its maximum supply.
FLM coins are distributed to the community with regards to participation on the network. For example, the token will be given for staking cross-chain assets, staking LP tokens, minting FUSD, depositing stablecoins to provide a margin when interacting with perpetual contracts, and contributing to governance proposals.
Note that before DAO takes over the governance, the Flamingo team will address governance issues through proof-of-authority (POA). FLM can be held by anyone wishing to join the NEO DeFi ecosystem. Furthermore, FLM holders are entitled to submit proposals to the DAO and also be able to vote for submitted proposals.
Flamingo supports FIP and FCCP proposals.
Flamingo Improvement Proposal (FIP) involves anything related to system design features such as risk control, liquidation, and liquidity improvement. Flamingo Configuration Change Proposal (FCCP), on the other hand, contains proposals directed towards the FLM release schedule, staking, fee structure, FLM distribution mechanism on the Perp module, etc.
FUSD is a stablecoin on the platform that is pegged to the US dollar (USD). Staking LP tokens allows one to mint the stablecoin. However, to unlock their collaterals, the minted FUSD has to be burnt.
Key strengths of Flamingo Finance
Interoperability
Flamingo is part of an ecosystem made up of NEO and the Poly network. Poly is a protocol developed on NEO in conjunction with Switcheo Network and Ontology. The protocol connects to other blockchain platforms such as Cosmos, Bitcoin, Ontology, and Ethereum.
To bring the interoperability factor, Flamingo connects to NEO, NEO connects to Poly, and Poly connects to other decentralized networks.
Capital Efficiency
Popular decentralized exchanges (DEXs) using an automatic market maker model underutilize capital from liquidity providers. Flamingo provides capital efficiency by clustering individual aspects such as a liquidity pool (LP) and a collateral pool.
For instance, Swap handles the LP while Vault provides the collateral pool. Therefore, liquidity providers can provide liquidity in Swap and still stake their tokens in Vault.
Fair Launch
To enable a fair launch for all, the platform does not support a pre-mine. Neither does it allocate coins to its founding team. Instead, all FLM tokens are distributed to the community.
What is Flamincome?
Being a DeFi-focused platform, it has a dedicated platform for yield farming or liquidity mining; Flamincome. The system provides yield farming functionalities identical to those offered by Yearn.Finance (YFI).
Flamincome comprises an optimizer and a normalizer. An optimizer converts staked assets into interest-focused assets, while a normalizer changes interest-based assets into synthetic assets with a 1:1 peg ratio to the underlying asset. Synthetic assets can be transferred to other DeFi networks for additional liquidity mining.
BREAKING NEWS: Mint Rush is PAUSED
The Flamingo team have paused the current Mint Rush only several hours after its launch due to “technical issues related to the Neoline wallet”. For now, the Team have taken a snapshot at 25th September 2020 at 14:11:33pm (UTC) at block height #6212123. This will act as a record of what had happened before the pause.
Mint Rush will be re-launch “as soon as possible”. Though when this will be is unknown. The Team will also be drafting a “fair resolution” for anyone who was affected, but the details are unknown.
Basic important information
During the early stage of the Flamingo project, the FLM supply will be distributed for the following use cases:
- Staking cross-chain assets.
- Staking Liquidity Provider (LP) tokens.
- Minting FUSD, (Flamingo’s synthetic stablecoin) asset.
- Depositing FUSD as margins to trade perpetual contracts.
- Participating in DAO governance.
Distribution Details
1.-09/25/2020–09/30/2020,
During this “Mint Rush” period, 50,000,000 FLM will be distributed to users staking whitelisted wrapped tokens into Vault.
Binance launchpool
Users will be able to stake their BNB or BUSD tokens into two separate pools to farm FLM tokens over 30 days
Launchpool Starting Date -
(2020/09/27 0:00 AM (UTC) to 2020/10/27 0:00 AM (UTC).
BNB stakers portion : 5,625,000 FLM in rewards (90%)
BUSD stakers portion : 625,000 FLM in rewards (10%)
Rememberable Things
- Only tokens in your binance spot wallet will be able to be staked into Launchpool.
- The FLM Launchpool will not use the same participation mechanics as the BEL and WING Launchpools.
OKB holders can stake OKB to mine FLM tokens in return.
I think that this is the more easy way to farm your FLM because OkB price is lower than BNB so we can stake more FLM
Total FLM token minable on OkEx- 2500000 FLM (1.67%)MINING PERIOD Date — Sep./25/2020 to oct./05/ 2020
Minimum OKB staking limit (per person) — None
Maximum OKB staking limit (per person) — 2000 OKB
KYC REQUIRED — KYC SHOULD BE VERIFIED LEVEL 2
Frequently Asked Questions
Why does NEO need to be wrapped to nNEO?
Although they exist on the Neo blockchain, the NEO and GAS assets are both UTXO-based. The majority of tokens on Neo are contract-based assets following the NEP-5 standard, which are easier to manage in smart contracts. nNEO can be considered as a replacement to CNEO, another contract that wraps NEO to a NEP-5 version, making it possible for NEO to be treated like any other NEP-5 token.
How do I get my original tokens back after wrapping?
You can redeem a wrapped token for its corresponding native asset using the unwrap function at any time. Cross-chain transactions are handled through Poly Network.
Do I earn GAS while my NEO is wrapped?
No, you will need to unwrap your nNEO to begin accumulating GAS again.
Is there a full list of supported wallets?
Several wallets have confirmed support for Flamingo in time for the Mint Rush. Which wallet to use depends on which assets the participant wishes to wrap and stake. Currently supported wallets are:
- Neo: NeoLine (Chrome extension only), O3 desktop wallet (Ledger devices supported)
- Ethereum: MetaMask Chrome extension
- Ontology: Cyano Chrome extension, ONTO mobile wallet
How do I get funds from X wallet to one of the supported wallets?
In most cases you have two choices, import an existing private key or create a new wallet. The simplest and safest option for most people is to create a new address in a supported wallet with a paper backup, and transfer into the address the desired amount of tokens to wrap & stake.
How many FLM tokens will I get for staking in the Vault?
FLM rewards depend on several factors, such as your proportional contribution to the staking pools, the duration of time that you stake for, the assets that you are participating with, and whether or not the Mint Rush event is still live.
Will NGD use any of its NEO to stake for FLM?
Yes. The reasons were outlined during Da Hongfei’s AMA on the Flamingo Discord server. Hongfei noted that NGD would need to acquire FLM in order to provide liquidity for the Swap’s NEO and FLM pairs, which will launch on the 30th. Additionally, NGD will also require a share of FLM in order to participate in kickstart governance, although it is noted that the team desires to move to a community-driven DAO model as soon as possible. “NF/NGD will ensure non-NF/NGD participation takes up the majority of the NEO pool.”
Has this project been audited?
Several teams have participated in auditing different pieces of the Flamingo stack:
- Flamincome’s Normalizer contracts — Audited by PeckShield and Red4Sec
- Flamingo contracts — Audited by PeckShield
- Poly Network protocol (for cross-chain) — Audited by NCC Group
- Poly Network Ethereum contracts — Audited by Certik
- Poly Network Neo contracts — Audited by PeckShield
What are the risks of using Flamingo or Flamincome?
Despite the audits, it is always possible that smart contracts may have bugs. Use of Flamingo is at the user’s discretion. There are no further inherent risks in the staking process using Vault, however users that opt to provide liquidity to the Swap module may also suffer from impermanent loss (IL), though as Hongfei noted in his AMA, this effect is sometimes overestimated:
“Only by providing liquidity to Swap, you may bear IL. After all, the IL is not as terrible as many people think. To provide liquidity to a trading pair A/B, after a period of time, if the price of A has fallen by 50% relative to B. How much do you estimate the impermanent loss to be? The answer is 5.72%. Which means you would only lose 5.72% by providing liquidity compared to holding A/B in your wallet. That’s not as bad as most people’s intuition.”
Why are certain tokens like GAS or NEP-5s not included?
According to Hongfei, current market cap is a barrier to listing some tokens. In the case of GAS, allowing staking would likely drive the price too high to perform transactions. Similarly, low cap tokens in the Swap module could cause significant IL for liquidity providers during periods of volatility, which they are more prone to experiencing.
