As the world of cryptocurrency grows, the popularity and market of decentralized finance also increases. Due to high demand, new players come into the market every day with their unique features, and one of them is Flamingo Finance.

Since its launch, Flamingo Finance has emerged as a notable player in decentralized finance on the Neo blockchain. It offers its users a wide range of protocols on a single platform.

This covers all the essential aspects of Flamingo Finance to provide a comprehensive understanding.

What of the protocol is Flamingo Finance?

Flamingo Finance is a decentralized finance (DeFi) platform run on the Neo blockchain with different network interoperability protocols. Flamingo aims to provide the entire DeFi experience, such as staking, farming, lending, wrapping, converting, and liquidity offerings. The platform facilitates all actions using automated market maker (AMM) transactions between tokens on the Neo N3 blockchain through smart contracts. Additionally, Flamingo Finance offers wrap and unwrap token capability from various blockchains through PolyNetwork, improving market liquidity and giving cross-chain asset access.

To run the liquidity market smoothly and reward users, Flamingo has its own token called Flamingo tokens (FLM). Users can earn liquidity pool tokens (LP tokens) by participating in the liquidity pool and staking their FLM tokens. These LP tokens can be exchanged for several cryptocurrencies on the platform.

Neo Global Development (NGD) initially launched the project, which highlighted Neo’s vision of creating a smart economy.

How Does Cross-chain Interoperability Work?

As mentioned in the whitepaper, Flamingo Finance uses cross-chain interoperability to convert tokens from one blockchain to another using PolyNetwork. This feature allows Flamingo to attract more users without worrying about blockchain limitations.

Poly Network is a global cross-chain protocol for implementing blockchain interoperability and building Web 3.0 infrastructure. It has connected over 35 different blockchains, including popular ones such as Ethereum, Polygon, Arbitrum, and BNB Chain.

• For example, the user wants to convert an Ethereum coin from the ETH chain to the BNB chain.
• Then, after initiating the transaction, SRC_MANAGER will log and read the source information.
• After reading, RELAYER sends the information to the destination chain.
• After receiving the proof information, DST_MANAGER validates the transaction using the source destination.
• To validate a transaction, RELAYER sends proof to the source chain, and the source chain will validate the proof and update the status of the transaction.

Cross-chain transaction process.

*Poly Network does not create new tokens; it connects two platforms with different blockchains.

Key features of Flamingo Finance

Convert

Users can swap their token into any token using the convert protocol feature. The protocol uses Auto Market Maker to execute trades. Flamingo’s AMM uses the Constant Product Market Maker (CPMM) model, which was popularized by many AMM-based DEXs, including Uniswap, to establish a price range. Flamingo also has slippage and deadline settings. Slippage means how much users are willing to lose (from 0.0% to 0.5%) when swapping tokens. A deadline means the time users can set to revert from converting. These settings protect users from sudden price changes.

*AMM: AMM is a tool for rebalancing token prices when users add or extract liquidity from one side.

*CPMM: Constant product market maker (CPMM) helps establish a range of prices for two tokens according to each token’s available quantities (liquidity).

Wrap and Unwrap

Flamingo acts as a blockchain bridge that allows users to convert cross-chain assets. Users can wrap tokens such as NEO, WETH, WBTC, ONT, CAKE, and USDT onto the Neo blockchain as NEP-17 tokens (bNEO, fWETH, fWBTC, pONT, fCAKE, and fUSDT). Conversely, users can unwrap these tokens in their native form.

Add and Remove Liquidity

Users can add liquidity on both sides of a trading pair in any available liquidity pools with a pair of NEP-17 tokens. To provide liquidity, users can earn LP tokens as a reward corresponding to deposited amounts. Also, by holding LP tokens, users can earn passive income from the trading fee. Users can withdraw liquidity anytime to convert LP tokens back into the corresponding assets.

Stake and Unstake

After participating in the liquidity pool, users can stake their LP tokens to earn FLM. Every liquidity pool receives an annual percentage yield (APY), which is determined by dividing the total locked-in liquidity by the total amount of FLM tokens the pool mints annually. Users can unstake their LP tokens and take the staked token back.

Reverse Pool

Reverse pooling is similar to staking and lets users stake FLM tokens. But instead of receiving FLM token rewards, users will get different tokens. This feature is great for users who believe in a project (a token) and want to hold it.

Reverse Pools on Flamingo:

What Makes Flamingo Unique?

Flamingo offers investors a wide range of investment possibilities to maximize their return. It includes liquidity provision, staking, lending, trading, farming, etc. The platform is simple, with advanced features that make it accessible to newcomers and experienced crypto traders.

Where other Dex platforms support only one blockchain, Flamingo Finance is breaking this barrier and helping as a blockchain bridge.

Flamingo Protocol is a top-level DeFi space on Neochain, allowing developers to leverage its scalability and security to create innovative applications in decentralized finance on Neochain. Flamingo’s interoperability features and partnership with other DeFi protocols enable users to access a wider range of assets and liquidity. Users can invest in a new project on the launch pad and buy through a presale or public sale.

What is the FLM Token?

The main purpose of the FLM token is to reward liquidity providers and provide a way to interact with the Flamingo Finance platform. The total hard cap of the FLM token is one billion, and it will be released into circulation by January 2039. At the time of writing, 587 million (58.7%) FLM tokens have been minted and are in circulation, with a price of $0.09125.

The FLM tokens are minted in real time and given to liquidity providers as rewards or rewards to users for holding some amount of the DEX-Traded Fund (DTF) and the Flamingo Single Stake Fund (FLUND). This process makes FLM a controlled inflationary token. On the other hand, FLM holders can cast votes and influence the Flamingo platform’s governance.

Supply and inflation rate of FLM tokens

• Token Name: Flamingo
• Token Symbol: (FLM)
• Total supply: 1 Billion
• Circulating supply: $587.1 Million
• Market cap: $53.5 million
• Market cap rank: 592

*Real market data from Coinmarketcap.com.

What is the Flamingo Flund?

Flamingo Flund Screenshot

Flamingo Flund is a DEX-Traded Fund (DTF), just like an Exchange-Traded Fund (ETF) and can be traded only on the Flamingo platform. Users can invest their FLM tokens in Flamingo Flund to earn rewards in FLM. Flamingo Litepaper says Flamingo Flund is non-inflationary and will not dump the token price once the minting is done.

How does Flamingo Flund work?

The Flamingo Flund works like this:

• Investors buy Flund DTF using any token, which is converted to FLM to buy Flund tokens. The Flund gets:
• 20% of minting rewards are in FLM
• 16% of all swap fees
• 100% of order book trading fees
• 40% from margin maintenance penalties on loans
• 47% from interest on loans
• All income is converted to FLM when investors enter and exit the Flund.
• Yield is added to the Flund, increasing investors’ share value.
• Investors get their yield as increased FLM when they exit.
• There is a 2% exit fee to discourage short-term investors, which the Flund collects.

Flamingo Stablecoin (FUSD)

FUSD is a decentralized stablecoin collateralized by mainstream Neo N3 assets (FLUND, bNEO, and fWBTC) of Flamingo Finance. FUSD is designed to maintain its value at around $1. Anyone can mint FUSD in Vault on the Flamingo platform by depositing one of any Neo N3 assets (FLUND, bNEO, or fWBTC). At this time, users can open up to three vaults with different collateral tokens and take FUSD as a loan against the collateral tokens. Currently, depending on the collateral token, the FUSD protocol charges some interest rates as follows:

• bNEO: 4%
• FLUND: 6%
• fWBTC: 6%

To secure the paying capacity of the protocol, users can mint only 35% FUSD of the value of the collateral token, and they can withdraw collateral at any time as long as the loan-to-value is not less than 35%. For example, users who want to deposit $10,000 of FLUND can mint a maximum of 3,500 FUSD ($3500 USD). This ratio (3,500*100/10,000 = 35%) is called the loan-to-value ratio.

How Do I Buy FLM Tokens?

Anyone can easily buy FLM coins on the Gate.io platform with the following steps. Remember, to withdraw FLM coins from the Gate.io exchange, you must have an N3 wallet.

• Go to gate.io exchange and create an account by entering your email ID and password.
• Set up your fund password by entering settings; this password will be asked during fund withdrawal.
• To buy FML coins, you must complete KYC with the proper documents.
• After KYC, go to Spot Trade, search for FML, and select.
• After opening the new page, fill in the amount in FLM or USDT you want to buy, and click the buy button.
• After a successful buy, go to the Wallet > Withdraw page.
• Here, select FLM and Neo N3 chains, and then enter the address of the N3 wallet.
• It will ask you for your fund password, 2FA, and email code; enter them correctly and submit. After a few confirmations, your FLM will arrive in your N3 wallet.

Recent developments

April 2024

• Flamingo Finance hosted a three-month data dashboard hackathon, offering at least 1000 GAS in rewards.
• Flamingo Finance brings the Ambassador Program back.

January 2024

• Flamingo publishes the 2024 roadmap, forthcoming staking feature, and order book updates.

September 2023

• Flamingo restores cross-chain functionality after a two-month hiatus following the Poly Network attack.

Conclusion

Flamingo offers everything and can be a one-stop destination for users looking for simple interference and advanced features. Their cross-chain functionality breaks the blockchain barrier, and its holistic approach positions Flamingo Finance as a versatile player in the DeFi space, aiming to create a seamless and integrated user experience.