What is Flamingo Finance (FLM)?

Flamingo Finance (FLM) is known as a full-stack DeFi protocol, built on the NEO Blockchain.

Basically, the Flamingo Finance protocol is interoperable, integrating many modules to create a comprehensive DeFi system. Anyone can join the project and become one of 3 roles: trader, staker, or liquidity provider.

How does it works?

Flamingo Finance is a DeFi protocol cluster that integrates multiple modules to provide a comprehensive DeFi infrastructure. In the Flamingo ecosystem, 100% of the transaction fees are distributed to the liquidity providers. As soon as the supplier withdraws the liquidity, Flamingo tokens will be burned.

Flamingo Finance’s primary function

Wrapper

It is a cross-chain asset gateway for blockchains based on Bitcoin, Ethereum, Neo, Ontoly, and Cosmos SDK. Users can wrap coins/tokens like BTC, ETH, NEO, USDT, and ONT on the NEO Blockchain as NEP5 (nETH, nNEO, nUSDT, nONT,…).

Wrapped NEP5 coins can also be redeemed for native coins or tokens. At that time, more coins will be added to the list as the project grows. Since NEO is based on UTXO, users can simply wrap NEO into NEP5 coins in a wrapper for better use.

Swap

This is Flamingo’s AMM, providing liquidity for the wrapped assets described above, along with other FLM and NEP5 coins.

Swap works on the x * y = k formula to set the price range for both coins according to the available quantity (liquidity) of each coin (similar to Uniswap).

In Swap, users can also trade coin pairs or provide liquidity to the liquidity pool by adding an equal number of coins to both sides of the trading pair. This activity includes elements such as: liquidity pool, LP token, trading, and trading router.

Liquidity Pool

The liquidity pool will include 1 pair of NEP 5 coins. Users can create a new liquidity pool with 2 NEP5 tokens. Or you choose a pool to power coins of equal value to the two tokens in the trading pair.

The liquidity providers can then receive back the LP tokens corresponding to the assets they have deposited into the pool.

LP token

This is representative of the liquidity provider’s right to reclaim their assets and earn additional transaction fee income, proportional to their contribution to the pool. Then, 100% of the transaction fees in the swap will be allocated to the liquidity providers. This means that the number of original coins they redeem from LP tokens will increase.

The LP tokens will be burned when liquidity providers withdraw their liquidity and get back the deposited NEP5 tokens.

Trading

Trading is done by on-chain liquidity pools in Swap, instead of using order books like on traditional CEX exchanges.

Currently, the transaction fee on Flamingo Finance is around 0.3%.

Trading Router

When a user wants to trade 2 tokens but there is not enough liquidity in the pool or the relevant pool has not been created, the Trading Router will automatically search for an optimal trading route, which can efficiently execute the transaction for the user.

Vault

Flamingo Finance’s asset manager is Vault, which can integrate staking and mining of assets and issue collateralized stablecoins. A FLM coin will be released. Users can claim this coin at will.

The vault’s primary function:

• Users will receive FLM coins after staking the whitelisted NEP5 tokens (wrapped tokens and LP tokens) into the Vault.

• Whitelisted LP token holders can mint stablecoin FUSD using the staked LP token as collateral. After that, they will receive the common part of the FMX coin.

FUSD

This is a synthetic synthetic stablecoin backed by Flamingo Finance collateral and priced in USD.

• LP Token Stakers can charge FUSD against their staked LP token but still maintain a higher actual collateralization rate than liquidation collateral. The number of FUSD can be used to mint at will.

• FUSD holders can burn their minted coins to unlock collateral.

• A FLM coin from FUSD minting: A user will receive FLM corresponding to the amount of FUSD mined. The distributed FLM can only be claimed by the user when the actual mortgage rate is higher than the target mortgage rate for the collateral.

Perp

Perp is an AMM-based Perpetual Contract exchange. Similar to Swap, traders can trade perpetual contracts with x10 leverage. At the same time, traders also use FUSD as margin and receive FLM coins. The price feed will be via Contract Oracle by Flamingo Finance.

DAO in Flamingo Finance

Governance activities in the Flamingo Finance ecosystem are taken over by the community. Through the DAO, FLM holders can participate in voting, recommending on important topics such as tokenomics, parameter configuration, and functional improvements/changes. These voters will receive FLM coins back after participating in the administration.

The parameters that the DAO will manage can include the following:

• Wrapper: Asset whitelist, fee structure.

• Asset whitelist, fee structure.

• Vault: FLM distribution mechanism, whitelist/distribution of staking tokens, whitelist/configuration of stablecoin collateral.

• Perp: FLM delivery mechanism and fee structure.

2 types of recommendations on Flamingo Finance

• Flamingo Improvement Proposals (FIP): Proposers can submit suggestions to improve Flamingo’s overall system design. such as liquidity improvement plan, liquidation mechanism, risk control strategy, etc.

• The Flamingo Configuration Change Proposal (FCCP): The FLM Holder can decide the most important Flamingo metrics as well as the coin release schedule.

What is an FLM coin?

FLM coin is the cryptocurrency on the Flamingo Finance platform. FLM coin holders can participate in voting, suggesting changes to the platform. In addition, the FLM coin is also used in some cases as follows:

• Staking cross-chain assets

• Stake coins for LPs.

• Minting FUSD coin, Flamingo Finance’s synthetic stablecoin asset.

• Margin FUSD as a deposit to trade perpetual contracts.

• Participate in DAO governance.

Information about the FLM coin

Token Name: Flamingo.
Ticker: FLM.
Blockchain: NEO.
Token Type: Utility Token.
Token Standard: ERC20.
Circulating Supply: 334,294,537.
Total Supply: 334,331,520
24 hour Trading Vol (April 13, 2022): $3,374,186.
Market Cap: $65,425,899

Token Allocation

Binance Launchpool: 4.17%.
Mint Rush: 29.17%.
LP Token Staking: 53.33%.
FUSD Mining: 10.00%.
Perp Margin Rewards: 3.33%.

Where can FML coins be bought, sold, and stored?

FML coin is currently listed and supported for trading on a number of exchanges, including Binance, MEXC, Gate, and others.

Of those, FML coin is the most traded on Binance, accounting for 30.87% of the total trading volume. You can refer to and choose one of the exchanges above to buy and sell FML coin.

FML is a token of NEP5. Therefore, you can store coins on wallet platforms that support NEP5, such as Neon Wallet, O3 Wallet, NEO Tracker Wallet,…

How do I get a FLM coin?

• Buy coins directly on exchanges such as Binance, Gate.io, LBank, Hotbit,…

• Join staking coins to receive the reward of FLM coins.

• Join Flamingo Finance’s governance model.

• Trade on Flamingo Finance’s perpetual contract exchange.

See ya in the next article !

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