As the defi craze continues along in the cryptocurrency world, Neo now has a competitor in the ring.
Neo founder, Da Hongfei, has revealed Flamingo, a new Neo-based full-stack decentralized finance (DeFi) protocol. Under incubation by Neo Global Development, Flamingo will begin launching today, with features such as a cross-chain asset gateway, automated market making (AMM)-based swaps, synthetic stablecoins, and AMM-based perpetual trading contracts.
Flamingo aims to deliver a comprehensive array of modules and tools to support a variety of use cases, from asset cross-chain and on-chain liquidity provision to deposit assets and reward distribution. FLM is set to become a key Neo-based asset which will comprise fees, collaterals and governance functions.
What is Flamingo?
Flamingo is a DeFi protocol that seeks to improve the liquidity and capital efficiency of financial applications and reduce investor risk. It will be comprised of five components: Wrapper, Swap, Vault, Perp, and a decentralized autonomous organization (DAO).
The components are described as follows:
Wrapper – A cross-chain gateway with support for BTC, ETH, and ONT tokens, among others. Wrapper is intended to mint assets based on the Neo token standard.
Swap – An onchain exchange that will provide liquidity via AMM’s comprised of NEO, GAS, NEP-5 tokens, and tokens from other supported ecosystems.
Vault – A “one-stop asset manager” where users can stake assets, mint synthetic collateralized stablecoins, or mine the FLM platform token. The Vault module is intended to provide functionality for token swapping by hosting liquidity pools of various baskets of tokens.
Perp (perpetual contract platform) – A non-custodial exchange for any token supported by the Flamingo DeFi protocol. Perp aims to offer margins for leveraged traders through the synthetic stablecoin (FUSD) issued via AMM’s in the Vault.
DAO – A component that allows the community to voice their input and shape the future of Flamingo protocol.
Neo DeFi Infrastructure
Currently, Neo is already supporting DeFi’s development by delivering an array of assets and a robust market. Moving forward, Neo is expanding a wider array of assets — from synthetic assets and stable coins — Neo is incubating various projects and agreements to unleash DeFi’s full potential. Underscoring Neo commitment to DeFi, Flamingo — a DeFi project incubated by Neo Global Development (NGD) — has already started development and is expected to be officially launched in mid-September.
Flamingo (flamingo.finance) is a full-stack DeFi protocol integrating crosschain asset gateway, AMM-based swap, synthetic stablecoins, and AMM-based Perpetual. As a pillar of Neo’s DeFi infrastructure, Flamingo rounds out the Neo ecosystem’s DeFi network while also delivering innovative solutions to challenges that Defi are facing, such as:
- Friction and the lack of atomic cross-chain interoperability: With Poly Network, Flamingo will become the first financial protocol within the DeFi market to support multi-chain asset mobility, thus overcoming single-chain market limitations while delivering unmatched efficiency.
- Limited efficiency and liquidity due to fragmented resources and over-collateralization: Flamingo will become the first DeFi protocol to fully integrate the AMM liquidity pool and collateral asset pool, thus optimizing capital use efficiency.
- Lack of long-term, sustainable operation and community participation: To incentivize community participation, Flamingo will distribute FLM — its project token — to participants based on contributions while also developing its value support.
100% Contribution-based Token Distribution
To drive community involvement in Flamingo — and DeFi under the principle of equality, FLM will be 100% distributed to participants based on contribution. FLM will be distributed based on how participants utilize Flamingo; four potential methods of participating in Flamingo are show in the below figure:
- Staking of cross-chain assets (only for the first two-week Mint-Rush period)
- Staking of LP tokens obtained by providing liquidity
- Staking of synthetic stable coin FUSD to provide margin liquidity
- Participate in governance
Flamingo (FLM) Distribution
Flamingo will not have a team allocation or private funding phase allowing FLM to be distributed fairly. This, they have a two-week Mint Rush period which begins on September 25th. A total of 5% of FLM can be allocated to incentivize cross-chain asset traders. Flamingo has stated:
During this time period, users can first transfer multi-chain assets through the Poly Network cross-chain protocol before using Wrapper to mint assets based on the Neo token standard which can then be staked in Vault to obtain FLM incentives.
During this stage, mainstream assets such as BTC, ETH, and ONT along with stable coins such as USDT will be supported. These transaction funds will become the basis for the liquidity of future on-chain transactions. NGD will contribute to early developments and liquidity provisions, thus will also receive relevant incentives alongside the community.
Are any people here on Hive participating in the Flamingo Mint Rush? Personally, I've grabbed up some Neo that I plan to add to their liquidity pool to earn some FLM during the mint rush. Defi has been super popular this last year, so there is some potential to earn a bit of money here. Of course, it comes with it's risks as well, so be careful!
Flamingo Official Website: https://flamingo.finance/
Medium: https://medium.com/flamingo-finance/
Twitter: https://twitter.com/FlamingoFinance