THELOGICALINDIAN - Flamingo Finance emulated assorted DeFi protocols from Ethereum rebuilt them on NEO and repackaged them all beneath one roof
Flamingo Finance is a “full-stack” DeFi agreement congenital on the NEO blockchain, according to business materials. Upon added inspection, however, it bigger resembles a hodgepodge of top DeFi protocols originally congenital on Ethereum.
But instead of authoritative a home on the cardinal two network, Flamingo draws clamminess from added above networks acknowledgment to interoperable agreement PolyNetwork.
What it lacks in innovation, it makes up for in the architecture of its audience. Already the agreement has bound in $1.6 billion in value, proving China’s massive appetence for cryptocurrencies and DeFi.
What Is Flamingo Finance?
For those who accept been afterward the DeFi area in crypto, Flamingo isn’t difficult to understand.
The activity is congenital on bristles specific pillars, all of which are already in actuality in one anatomy or addition on Ethereum. Flamingo additionally offers a built-in babyminding token, FLM, which will be discussed shortly.
The aboriginal colonnade is alleged Wrapper. It is not antithetical from accepted DeFi projects like Synthetix and Ren, as it allows Flamingo users to actualize assorted “n-tokens” called to altered assets. Supported tokens accommodate Neo, Ontology, Ethereum, and Cosmos-based blockchains like Kava and Terra. Flamingo will anon action abutment for Bitcoin.
The additional colonnade is alleged Bandy and is identical to accepted “Constant Product Market Makers,” like Uniswap. The key aberration is that Flamingo’s bandy alone supports NEP-5 tokens, Neo’s agnate to Ethereum’s ERC-20 badge standard.
Like Uniswap, users are additionally appropriate to accumulation alternate liquidity, charge pay a 0.3% trading fee (which is broadcast to clamminess providers), and use a trading router to advance barter matching.
The third colonnade is alleged Basement and imitates yEarn Finance’s yVault function. Users can pale NEP-5 tokens into the basement and acquire the FLM babyminding badge as allotment of the project’s clamminess mining event, alleged “Mint Rush.” The accident concluded on Sept. 30.
Through Vault, Flamingo users can excellent a USD-pegged stablecoin alleged FUSD. Users who excellent FUSD will be adored in FLM commensurable to the bulk minted. This affection is not currently accessible and will go alive on Oct. 28, 2024.
In November, the aggregation will barrage the fourth colonnade alleged Perp, a derivatives belvedere acceptance traders to allowance barter their NEP-5 tokens up to 10x. And in December, the aggregation will barrage their DAO, through which FLM badge holders can vote on agreement updates and added babyminding operations.
At the time of press, the afterward pillars are active: Wrapper, Vault, and Swap.
FLM Tokeneconomics
Based on the project’s documentation, there will be 150,000,000 FLM in circulation. This accumulation isn’t capped, however. Users can acquire these tokens at anniversary appearance of the Flamingo’s rollout by accommodating in assorted arrangement activities.
The best contempo activity, alleged Mint Rush, appear the barrage of the aboriginal appearance of Flamingo. The primary action of this accident was to attract ERC-20 badge holders to add clamminess to the protocol. The arch amid assorted Ethereum assets and Flamingo is a apparatus alleged Flamingcome.
Users can pale their assets in the apparatus to acquire adorable APYs, n-tokens for interacting in Flamingo, additional FLM tokens. The mechanics of Flamincome acquiesce for added iterations abaft the Mint Rush event. Unpacking an archetype transaction will accomplish this apparatus added clear.
Users captivation an ERC-20 badge like USDC can do two things in Flamincome to acquire on these tokens. The aboriginal leverages the “Optimizer” feature, which turns USDC into an interest-bearing “f-token” alleged fUSDC. Users can again use f-tokens like fUSDC to collaborate with the additional bore alleged “Normalizer.”
It is through the Normalizer that f-tokens are angry into n-tokens. The closing can be acclimated aural the Flamingo ecosystem.
As for the token’s amount action, it resembles abounding crop agriculture administration mechanisms. FLM entered the bazaar at a aerial of $1.59, until coast to a accepted amount of $0.37 per token.
Though there are still several altered phases to alleviate according to the team’s roadmap, it is adamantine to brainstorm the barrage of leveraged trading and a DAO will do abundant for amount action. The badge has additionally already been listed on ample centralized exchanges like Binance, OKEX, and FTX Exchange.
Binance and OKEX additionally hosted Flamingo and its FLM badge on their corresponding clamminess mining platforms.
As of Sept. 28, the activity boasted about as abundant amount bound in as assertive Uniswap.
Identifying Flamingo’s Red Flags
The activity has becoming criticism from associates of the Ethereum association for Flamingo’s vampire-like characteristics. Like Compound Finance’s Robert Leshner, critics declared it as a SushiSwap attack, but for the absolute Ethereum community.
In alluring users with added advantageous allotment on their assets, Ethereans would apparently birthmark to NEO. However, those accustomed with the SushiSwap advance apperceive that these sorts of incentives rarely trump hard-earned association support.
There accept been several abstruse mishaps too. During the Mint Rush accident aftermost month, one of Neo’s primary wallet providers, Neoline, crashed due to acute demand. Da Hongfei, the architect of NEO, eventually postponed the accident to recuperate.
Scanning Flamingo’s Medium channel, abstruse issues accompanying to abundant user cartage arise common. So far, no users accept appear any absent funds. Elsewhere on Reddit, users reported issues back wrapping their assets on Flamingo. Many of these issues were resolved, but the barrage of Flamingo has so far been rocky.
In the project’s massive Discord channel, there are accepted complaints apropos entering and departure the ecosystem. But due to the channel’s anarchic nature, it is difficult to analyze which issues are the accountability of the user or the protocol. However, it should be acclaimed that abounding users accept bootless to accept which captivated tokens are allotment of the NEO ecosystem or the Ethereum ecosystem.
This abashing is circuitous by 18-carat UI faults that the channel’s admin frequently relays from the association to the team.
Community and Team
Initially marketed in 2017 as the “Chinese Ethereum,” NEO is primarily a Chinese phenomenon. Similarly, the DeFi movement has additionally been accepted in Asia. The founding aggregation is about aggravating to accompany a completed DeFi activity to a citizenry of users already absorbed in exploring the niche.
Based on business materials, the primary associates of Flamingo are Adam Yang, Yuan Gao, and NEO’s founder, Da Hongfei. In a association AMA event, Hongfei additionally explained that this was one of the aboriginal times that the Neo Global Development (NGD) aggregation helped bear a NEO-based project. Previously, NGD alone offered allotment and tech support.
Hongfei said:
“This time NGD alternate in the evolution action because some basal modules are bare in DeFi development, and we accept to attempt adjoin time. Neo3 will be launched about January abutting year, and we actual abundant charge to accept the requirements of the appliance band in adjustment to do a acceptable job in the agreement layer.”
For a abounding account of NGD members, NEO amount developers, and association members, readers are brash to appointment NEO’s official site.
Final Notes on Flamingo
Flamingo Finance takes several pages anon from Ethereum’s DeFi playbook. Though they action little improvements on accepted protocols like yEarn, Synthetix, or Uniswap, they achievement to accomplish bazaar allotment by bundling anniversary agreement into one platform.
And based on basic activity, it appears to be successful.
But as added and added users attack to accompany Flamingo, the project’s weaknesses activate to show. This has been in the way of abstruse errors due to abundant cartage and an unpolished UI, arch to confusion.
The use of assorted bizarre captivated badge procedures adds to this confusion.
Still, the NEO association is one of the better in Asia. Thus what Flamingo lacks in addition and glossy user experience, it makes up for in its sprawling community. Whether this is abundant to accomplish it a close adversary globally, charcoal to be seen.
Disclosure: Da Hongfei is an disinterestedness holder in Crypto Briefing.
