Flamingo Finance has managed to garner 1.6 billion USD in Total Value Locked (TVL) a week after launch.

 

Flamingo (FLM) is a full-stack DeFi protocol,  integrating cross-chain asset gateways, AMM-based swaps, synthetic stablecoins and perpetual contracts. The project aims to be a swiss army knife for the entire NEO ecosystem, as it combines the functionalities of Yearn Finance, Uniswap, Maker, Synthetix, and Ren under one roof. Da Hong Fei, the founder of Neo, in a recent interview gave special thanks to Yearn, as it served as a major source of inspiration for the project.

Flamingo is delivering optimized user experiences by integrating platforms for improved liquidity, capital efficiency, and reduced investor risk. Comprised of five main components, Flamingo offers features such as:

  • Wrapper – a cross-chain asset gateway
  • Swap – an on-chain liquidity exchange
  • Vault – stablecoin issuance and lending
  • Perp – a perpetual trading platform

These components will be launched in phases, eventually realizing the support of comprehensive cross-chain transfers, reward mining, swap transactions, liquidity pool construction, liquidity supply incentives, stablecoin mint and perpetual contracts.

Today, wrappers and cross-chain asset staking are live. Swap and LP token staking will begin on the 30th with phase 3 stablecoin issuance set to begin on October 28th. Perp will launch on November 25th and the Flamingo DAO is expected to launch on December 23rd.

It is estimated that roughly 30% of the assets locked come from other blockchains via Poly Network. Poly Network is an interoperability alliance between the Neo, Ontology and Switcheo. Poly Network is pioneering heterogeneous rather than homogenous interoperability to overcome scalability challenges and advance mainstream blockchain applications. Reflecting this goal, Poly Network already supports Ethereum, Neo, Ontology, and Cosmos-SDK — with plans to also include Bitcoin to create a truly interoperable future. To achieve its goals of optimized efficiency, value transfer, and privacy, Poly Network will link together platforms to enable interoperability and atomic cross-chain transactions; it will neither issue tokens nor house built-in smart contracts.

The team prides itself for having a fair launch as there was no pre-sale, pre-mint or team distribution. 100% of the total distribution will be based on participation.

Red Flags in the Pinkland

Robert Leshner, the founder of Compound, was highly skeptical of the project. He believes that this is a ‘vampire-attack’ on the entire Ethereum ecosystem and that it will have important ramifications moving forward. He, in response to a reply on twitter, acknowledged that this was an intelligent approach, something that the Ethereum community has not seen before, as it starts on Ethereum blockchain, wrapping & porting assets over to the NEO blockchain directly.

 

One thing that is certain is the fact that the NEO blockchain is not decentralised, at least not in its current state. There are 7 consensus nodes and with the Neo foundation operating 5/7 nodes, this means the Neo Foundation operates more than 70% of all the total consensus nodes. Da Hong Fei said that the protocol aims to become decentralised after Neo 3.0 is out. However, Neo has been live on the mainnet since 2016, and so far it has not achieved any decentralisation. Only time will tell if the Neo protocol does indeed become a fully decentralised protocol or not.

Users on the Neo sub-reddit have had issues wrapping and unwrapping coins/tokens since the launch of the wrapper. While many of the issues seem to have been resolved, there are still plenty of users reporting problems when trying to wrap/unwrap their coins/tokens.

Lastly, users should be careful as there are many scam sites floating around, pretending to be the official Flamingo site. Please keep in mind that Flamingo will never ask for your personal details or any KYC documents. Users should, under no circumstances, provide these documents, as they are likely to be on a scam site and will lose their crypto along with their personal details/KYC details. The Neo wallets supported by Flamingo are :- O3 wallet by the O3 Labs and NeoLine wallet by the NEONEXT community.

In closing, the emergence of a parallel DeFi ecosystem outside of Ethereum seems to be a recurring trend, first copied by Tron and now subsequently by Neo. While this points towards a growing foundation for DeFi as a whole, we’re eager to see other DeFi-focused blockchains build new applications and tooling, rather than copying existing winners.

To stay up with Flamingo, follow the project on Twitter.