Flamingo Swap module to launch October 5th; Mint Rush to end

Flamingo Swap module to launch October 5th; Mint Rush to end

Flamingo Finance users will be able to trade tokens on the DeFi platform starting on October 5th. Flamingo is launching its Swap module, an onchain automated market maker powered exchange. Swap also ushers in the second phase of Flamingo’s FLM token distribution schedule, ending the Mint Rush period.

Flamingo is launching its DeFi functionality in a step-by-step manner and is in the third week of its platform rollout. Each phase makes use of the functionality released before it, and also serves as a mechanism to distribute Flamingo’s FLM token.

Preparing tokens for use in Swap

Flamingo began with the release of Wrapper and Vault, which allow users to prepare assets for use on its platform. Non-NEP-5 assets such as BTC, ETH, and NEO can be converted to the NEP-5 standard through Wrapper, making them easier to use in Neo smart contracts.

During what was called the “Mint Rush,” users could stake their newly minted NEP-5 tokens on Flamingo using Vault and receive FLM rewards. Over 50 million FLM tokens were distributed to users who completed this process.

This incentivized the inflow of more than US $1.5 billion in assets into Flamingo. Users who would like to continue to earn rewards on Flamingo can now use these assets in the next phase by contributing to Swap’s liquidity pools.

Swap liquidity provisioning & LP staking

Swap is a simple to use onchain exchange that allows traders to swap one token for another. At the protocol level, applications may use it in the future to power convenient in-app token swap functionality.

Swap relies on its users to provide it with liquidity. This involves depositing token pairs into pools, creating an abundant supply for traders to exchange tokens against. Liquidity providers are compensated for their contributions through the distribution of trading fees, and provided with LP tokens that can be redeemed at any time for their underlying contribution. The LP tokens can also be staked in Flamingo’s vault in return for FLM rewards.

For example, a user may want to provide liquidity to the FLM/nNEO market. They will deposit an equal value of FLM and nNEO (based on market price) into the Swap pool and receive FLP-FLM-nNEO tokens in return.

If the user contributed 1% of the entire FLM/nNEO market, they will receive 1% of all the fees collected on trades. Fees are currently set at 0.3% per trade.

Further, by staking FLP-FLM-nNEO tokens in Vault, users will receive FLM rewards. In future phases, staking LP tokens in Vault will allow users to mint Flamingo’s FUSD stablecoin.

If the user decides they would like to withdraw their tokens from the pool, they may redeem the LP tokens using Swap. However, the original ratio of one token to the other may have changed based on value and market conditions.

Swap launch

Swap will open for liquidity provisioning and token swaps at 12:00 UTC on October 5th. LP token staking for FLM rewards will begin one hour later. The Mint Rush phase officially closes at 11:00 UTC on October 5th.

Trading pairs noted for support upon Swap’s launch are:

  • FLM/nNEO
  • pnWBTC/nNEO
  • pnWETH/nNEO
  • pONT/nNEO
  • nNEO/pnUSDT
  • pnWBTC/pnUSDT

Distribution of FLM to LP token stakes is as follows:

  • FLP-FLM-nNEO 20%
  • FLP-pnWBTC-nNEO 20%
  • FLP-pnWETH-nNEO 10%
  • FLP-pONT-nNEO 5%
  • FLP-nNEO-pnUSDT 20%
  • FLP-pnWBTC-pnUSDT 25%

2,857,143 FLM will be released per day between the LP staking launch and 13:00 UTC, October 7th. 1,071,429 FLM will be released per day between 13:00 UTC, October 7th and 13:00 UTC, October 14th.

Readers can find more information in the Flamingo Swap launch announcement and the user guide.

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