Flamingo is a decentralized financing platform based on the NEO blockchain and the Poly Network interoperability protocol. Flamingo Finance (FLM) is based on NEP-5, NEO’s token compatibility standard. So it is also secured by the NEO blockchain.
- 1 What is Flamingo?
- 2 What is Flamingo Swap
- 3 What is Flamincome?
- 4 Who are the founders
- 5 What makes Flamingo Finance unique?
- 6 Flamingo . Components
- 7 Flamingo Finance Token ($FML)
- 8 NEO 3.0 vs ETH 2.0
- 9 Investing Flamingo Finance
- 10 MetaMask Wallet
- 11 Roadmap
- 12 The future for Flamingo Finance?
- 13 Takeover
- 14 Flamingo (FLM) Price
- 15 Conclusion
What is Flamingo?
Flamingo is a new generation of DeFi protocol. The protocol is built with Neo ‘s technology to achieve fully integrated decentralized capital markets that can support most blockchains. Flamingo has atomic cross-chain interoperability thanks to the integration with Poly Network, where the Switcheo Exchange can also provide cross-chain liquidity. Flamingo Finance works blockchain override and is not limited to a single-chain market as is the case with many Ethereum DEX protocols, such as Uniswap† Flamingo further provides its own synthetic stablecoin platform and its own Automated Market Maker (AMM) system for realizing a decentralized swap trading exchange.
What is Flamingo Swap
Flamingo Swap is one of the modules on Flamingo Finance’s DeFi platform. It is an on-chain exchange platform where users can trade one token against another. This method is driven by market makers. As with other platforms, Flamingo Swap requires users to add token pairs to these pools, which in turn creates an offer for traders to enter and exchange tokens. Users of the platform can add tokens to specific pools, where they are rewarded for their contribution. For this they receive a part of the transaction costs, which is currently 0.3% per swap. In addition, they will also receive LP tokens as a reward for making their currency available.
What is Flamincome?
Being a DeFi-focused ecosystem, it has a dedicated platform for yield farming or liquidity mining; Flaming/Flaming. The system offers yield farming functionalities identical to those of Yearn.Finance ( YFI ).
Flamincome consists of an optimizer and a normalizer. An optimizer converts deployed assets into interest-based assets, while a normalizer converts interest-based assets into synthetic assets with a 1:1 peg ratio to the underlying assets. Synthetic assets can be transferred to other DeFi networks for additional liquidity mining.
Who are the founders
The founder of Flamingo is Da Hongfei . This is a Chinese entrepreneur who is also known as the co-founder of one of the main competitors of Ethereum: the blockchain network Neo, on which Flamingo is based. Hongfei is also a co-founder of OnChain, a private blockchain services company.
Da Hongfei has a degree in English and Technology from South China University of Technology and worked as CEO of the company IntPass Consulting before teaching himself to code and entering the blockchain world in 2013-2014.
What makes Flamingo Finance unique?
Flamingo positions itself as a single platform that combines multiple decentralized financial tools for Neo into a common ecosystem that will be managed by its users through a decentralized autonomous organization (DAO).
Decentralized finance is a burgeoning, fast-growing trend in the cryptocurrency industry that includes various financial solutions that often operate on top of cryptocurrency blockchains. DeFi platforms act as an extra layer and are aligned with the idea of the crypto industry as a whole, which is to eliminate third parties related to monetary and financial systems. The DeFi industry, which emerged in early 2019, already had more than $4 billion in locked-down collateral assets by mid-2020.
Some of the main use cases in DeFi are cryptocurrency lending, yield farming, and decentralized exchanges. For most cryptocurrencies and their respective DeFi environments, each of these solutions is usually provided by a single platform.
The unique advantage of Flamingos stems from the fact that it aims to combine all the major financial instruments for the neo-cryptocurrency token (token wrapping, liquidity pooling, asset vault and contract trading) and make them available through a single platform operated by its own platform is managed. users in a decentralized way.
Flamingo . Components
Flamingo Finance consists of five different components that will be launched in different phases.
This ensures automatic market making (AMM) on the chain. 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 come together in a pool by providing tokens with NEO’s standard NEP-5 token.
Flamingo uses this component to enable the interaction between the chains of blockchain assets. In a world of decentralized finance, interoperability is becoming increasingly important. Wrapper works with Bitcoin , Ethereum, NEO and Ontology , where tokens from these platforms can be ‘wrapped’ by converting them into NEP-5 tokens and using them on the NEO network.
The Vault module provides an interface for managing, mining , and staking assets. It also handles the issuance of collateralized stablecoins . Vault strikers earn rewards in the form of the platform’s native token, FLM.
Perp is derived from the word perpetual and is designed with perpetual contracts in mind. It uses automatic market making to enable a perpetual contract exchange that deals with a large number of assets. For experienced traders it is possible to trade via Flamingo Fance by means of leverage. This of up to 10x for wozel long and short positions.
In the decentralized world, everything has to be distributed, including governance. A DAO can be seen as a company that works independently, without staff. The organization is built on an already smart contracts . Flamingo uses the DAO structure to allow for optimal community involvement in the operation of the platform. Issues covered by DAO include token economy, functionality changes, and parameter configuration.
In general, DAO has a say in what happens on the Wrapper, Swap, Perp and Vault modules.
The various components will realize fully integrated DeFi capital markets. Today’s DeFi platforms are fragmented and not linked together. Flamingo Finance has learned from the previous experiments that have taken place on the Ethereum network. Using Neo’s technology, they have developed a superior DeFi protocol to achieve interoperability with all blockchains through the Poly Network.
Flamingo Finance Token ($FML)
Flamingo Finance also has its own FLM token for rewarding the community of users on Flamingo. The FLM token will be 100% distributed to the users. The tokens can be used for staking and governance purposes. The tokens are best purchased on the Flamingo SWAP DEX with NEO.
FLM Token and FUSD
FLM is Flamingo’s native utility token and is dedicated to governance. It is built to NEO’s NEP-5 standard. Interestingly, the token has no limit on its maximum supply.
FLM Coins are distributed among the community regarding participation in the network. For example, the token is given for staking cross-chain assets, staking LP tokens, farming FUSD, depositing stablecoins to provide margin when interacting with perpetual contracts, and contributing to governance proposals. .
Note that before DAO takes over governance, the Flamingo team will address governance issues through Proof of Authority (POA). FLM can be had by anyone who wants to join the NEO DeFi ecosystem. In addition, FLM holders have the right to submit proposals to the DAO and can also vote on submitted proposals.
Flamingo supports FIP and FCCP proposals.
Flamingo Improvement Proposal (FIP) covers everything to do with system design features such as risk management, liquidation and liquidity improvement. Flamingo Configuration Change Proposal (FCCP), on the other hand, contains proposals targeting the FLM release schedule, restocking, fee structure, FLM distribution mechanism on the Perp module, etc.
Flamingo USD (FUSD) is a stablecoin on the platform that is pegged to the US dollar. By staking LP tokens, one can mint the stablecoin. However, to unlock their Collateral, the minted FUSD must be burned.
NEO 3.0 vs ETH 2.0
An interesting competition is emerging in the blockchain world. There have been rounds of discussions about which of the blockchain networks is the best. One of the prominent competition is between Neo blockchain and Ethereum blockchain.
With the launch of both the Neo 3.0 and Eth 2.0 on the horizon, the discussion is taking on an intense form. So, which of these upcoming advanced blockchain networks will prevail over the others?
Ethereum 2.0 will be a better version of Ethereum 1.0. It will help the Ethereum ecosystem to reach new heights and will consume much less energy. Ethereum 2.0 will improve the scalability and security vulnerabilities of the Ethereum blockchain.
On the other hand, NEO blockchain has a reputation for being relatively better than Ethereum in terms of scalability. So, would Neo 3.0 help maintain the same edge over Ethereum 2.0? If it is up to Neo, this is undoubtedly the case! Neo 3.0 makes Neo blockchain even more scalable. It will also add many new enterprise features to fit the larger projects. With Neo 3.0, we expect Neo blockchain to become even more user-friendly. Neo has many advantages over Ethereum and Neo 3.0 is well positioned to keep Neo blockchain ahead of the race.
Investing Flamingo Finance
Flamingo Finance offers multiple ways to participate in the protocol. NeoLite, Metamask, and Cyano wallet are some of the most well-known solutions available to join.
You need to convert your tokens to NEP-5 based assets to participate in the Flamingo.
Trading in crypto in a DeFi ecosystem is always done using an external wallet . A popular wallet is this one from Metamask. You can download this and then use it as a plugin in Chrome extension.
You can import an existing Ethereum wallet into MetaMask by clicking Import wallet in the plugin. After you have entered your seed phrase and password for your wallet, you can start importing them.
The other option is to create a new wallet and keep your private key. Just click on “Create a Wallet” and enter a new password for it. Don’t forget to back up your private key. Metamask is one of the best wallets to manage Ethereum tokens and can be used for packing and unpacking these types of tokens in Flamingo.
In Q1 and Q2 of 2021, they have different goals:
- Restructuring the asset structure of the entire Flamingo system (including the Ethereum side and the Neo side) to ensure the price coupling mechanism and provide a competitive, low-friction, upgradeable and compatible asset circulation environment.
- Launch of the on-chain perpetual trading component, which will eventually grow into a derivatives platform capable of trading assets in the future.
- Exploration and expansion, including new components, project collaboration and the ability to deploy across multiple chains.
The future for Flamingo Finance?
Flamingo aims to become the springboard to accelerate the development of Neo’s DeFi ecosystem. Neo’s dedication to DeFi doesn’t stop with Flamingo. From lending to insurance and asset management, the potential is limitless. Flamingo’s design continues to be optimized, with questions such as how to introduce more external asset types, what Oracle implementation they should provide to fine-tune the protocol, as well as the open governance mechanism before the DAO structure goes live.
After that, they want to continue the dialogue with members of the community to proactively further optimize their protocol based on the feedback received from the community.
Flamingo Finance recently announced that it is seeking an independent team to take responsibility for the development and management of Neo’s DeFi platform. While Neo Global Development is accepting submissions and screening applicants, FLM token holders will ultimately vote on the team’s approval.
Flamingo (FLM) Price
Flamingo Finance is located on Neo’s blockchain with features of the Ethereum blockchain. Decentralized exchanges are increasingly becoming the norm and although they are largely similar, there are differences between them. Flamingo Finance wants to focus in particular on interoperability and thus enable communication between different blockchains.
While they offer improvements to popular DEXs and protocols such as UniSwap, they hope to gain significant market share by bundling each protocol into one platform. In the past, Flamingo has shown that it has struggled with growth due to a flawed interface and technical errors.
Nevertheless, Neo is one of the largest communities in Asia. Where Flamingo has areas for improvement on user experience, it certainly has a very solid community behind it. The future should also show whether this is sufficient to make the project successful in the long term.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com