Market context

In the era of too many cooks spoiling the broth, almost everyone wants to participate and share a piece of super sweet DeFi cake. Why is that? The BMV already has a series of articles on this topic. Therein, we also mention the dreams of the NEO and NEO’s DeFi bigwigs. NEO is essentially a Smart Economy-oriented project, and of course, NEO Finance will be an indispensable part. Therefore, when NEO announced Flamingo, BMV was no surprise.

However, the prominent guy NEO seems a little late this time. Flamingo was announced after Binance Launchpad, Binance Swap and even after SUN mining and Tron. Nonetheless, being late is not necessarily a bad thing. Let’s read the report on Flamingo and see if it has anything better/worse than its predecessors!

Project overview

Flamingo is a DeFi project that focuses on providing DeFi infrastructure through its series of products.

The Flamingo project is supported and developed by the NEO team and is directly built on the NEO blockchain. With Flamingo (FLM), NEO attaches great importance to integrating the project's Smart Economy. The most remarkable thing about Flamingo is that the project will gradually transfer the governance mechanism from Proof of Authority (POA) to DAO (Complete Governance Community).

Project objectives

As a DeFi project, ignoring a future with great promise, the goal of the DeFi project is to attract large amounts of funding from other ventures for its projects.

What will Flamingo Do?

First, they will focus on interoperability. Flamingo is part of the NEO and Poly Network ecosystem. They will connect/interact with Cosmos SKD-based Networks, Bitcoin, Ontology and ETH - the leading blockchains of today.  In reality, this process is more complicated. To provide interoperability between different blockchains, Flamingo will connect with NEO, while NEO will connect to Poly, and from Poly, it will interact with other blockchains.

Next, they strive for efficiency in asset management. Currently, most DEX exchanges adopt the AMM (Auto Market Maker) mechanism, and it is challenging to perform Staking and LP simultaneously.

Flamingo separates these two functions into two independent products. With Flamingo, they have the liquidity to exchange LP and Vault. Therefore, users can provide liquidity in Swap and stake tokens in Vault.

Additionally, NEO also hopes to ensure the fairness of its members by not allowing pre-mine. In other words, there is no FLM token released in the market before the launch of FLM, and even the founder/development team would not receive it. Alternatively, all FLM tokens are for the community.

Key project product or MVP

Flamingo has five main components: Swap, Wrapper, Vault, Perp and DAO.

Swap: One of Flamingo's products is that they use Flamingo SWAP and AMM mechanisms such as Uniswap and Sushiswap. However, Flamingo Swap only applies to Wrapped tokens (e.g. WBTC, WETH...). Of course, as it works on the NEO blockchain, LP will use NEP-5 tokens to close the liquidity pool.

Wrapper: This is a function for "wrapping", or in other words, to convert assets from other blockchains to NEP-5 format for use on the NEO blockchain. The Wrapper is currently available for Bitcoin, Ethereum, NEO and ONT.

Vault: Vault is FLM's asset mining/staking module and has been released. With Vault, users will stake their assets to receive FLM tokens

Perp: Perp is a derivative feature that AMM uses to turn Flamingo into a lending platform that can leverage long/short positions.