Flamingo Announces Wave 3 of Liquidity Pool Changes, f- and p-Asset Migration, New Collateral Assets, and More

In November, 2022, we announced the first wave of a four-wave series of changes for Flamingo. And in December, 2022, we announced the second wave of changes.

And now, as part of one of our biggest announcements to date, Flamingo will carry out the third wave of liquidity pool changes, changes to the total FLM minted per day, changes to FLUND, new collateral tokens and interest rates for Flamingo Lend, new FUSD pools, a new Action Center to include f- and p-asset migration, and more.

So sit back, grab a coffee (you’re gonna need it), put on your swimming trunks, and let’s dive in.

Wave 3

On week 39 of 2024, Flamingo will move from Wave 2 (Current) to Wave 3 of liquidity pool changes. Rather than announcing on launch, we want to announce these changes to our community ahead of time so that everyone has some time to prepare.

Wave 3 of liquidity pool changes will include the following.

1. Reduce the daily FLM minting rate

• Reduce the total FLM minted daily from 357,142 FLM to 146,880 FLM.

2. Reduce daily minted FLM going to FLUND

• Reduce the daily FLM minted going to FLUND from 20% to 5.75%.

3. Change minting allocation on liquidity pools

• Change the daily FLM minted allocated to many liquidity pools (see the FLM Minting Distribution image above).

4. Remove liquidity pools

• Remove 21 liquidity pools in total (see the FLM Minting Distribution image above).

5. Add new FUSD pools

• Add FUSD liquidity pools for GAS, WETH, CAKE, SWTH, GM, ONT, WING, and BNB (see the FLM Minting Distribution image above).
• And re-add pools for the new versions of f- and p-assets (see the FLM Minting Distribution image above).

Flamingo Action Center: f- and p-Asset Migration

On top of these Wave 3 changes, on Monday, September 23, 2024, in regards to the recent Poly Network hack (detailed in our Asset Support Initiative), we’ll also launch a new Action Center on Flamingo.

In the new Action Center, users can get a bird’s-eye view of their f- and p-assets to help users through the process of migrating. Users will be guided through various migration processes such as which liquidity pools to unstake and remove liquidity from, which collateral needs to be removed from Lend, and which assets need to be migrated.

Users can then unstake and remove all liquidity from affected f- and p-asset pools, remove any collateral they have from f- and p-assets, and migrate all f- and p-assets to their new, fully backed assets and amounts.

Continue reading for a quick guide on how to use the Action Center, or watch the short how-to video here:

On desktop, select the hamburger menu on Flamingo and go to the Action Center.

Remove your legacy liquidity

In this section of the Action Center, you can see which liquidity pools you should remove your assets from, since legacy f- and p-asset pools have been sunsetted from Flamingo and no longer receive staking rewards.

You will have to remove your liquidity from these pools, migrate to the new assets, and add liquidity and stake in the new pools to continue receiving rewards.

1. Select Remove LQ.

2. Select Remove Liquidity.

3. Your Neo wallet will prompt you to confirm the transaction. Once confirmed, you have now successfully unstaked and removed all f-and p-asset liquidity from sunsetted pools. Return to the Action Center to see if you need to take any further actions.

Migrate your f- and p-assets

In this section of the Action Center, you can see which legacy assets you hold that need to be migrated to their new, fully-backed versions. The tickers for the new versions of these assets will no longer include f and p. For example, legacy fUSDT will migrate to supported USDT (but will still be wrapped).

Legacy assets can be migrated to the fully-backed assets and respective amounts.

1. Select Migrate.

2. Read through the prompt to get an understanding of the assets you will migrate and the assets you will receive. If you agree, select Migrate Now.

3. Your Neo wallet will prompt you to confirm the transaction. Once confirmed, you have now successfully migrated all of your f-and p-assets to the new, fully-backed assets and respective amounts.

Migrate your collateral

In this section of the Action Center, you can see which collateral in Flamingo Lend you need to migrate.

To migrate your collateral in the Action Center you first need to repay your loan in Flamingo Lend.

1. Select Migrate to open the Flamingo Lend page.
2. Select View Loan on the loan using the depreciated collateral.
3. Select Repay Loan and toggle Repay loan in full. If you do not have enough FUSD to repay the loan in full, you can either partially repay the loan or buy more FUSD to repay the loan in full.
4. Go back to the Action Center and complete the pending tasks to complete the asset migration.

Asset Support Initiative — FLOCKS Airdrops

As previously announced in our Asset Support Initiative, users who migrate f- and p-assets will receive FLOCKS airdrops equal to ~50% of their loss at the time of migration (FLOCKS could be worth more or less in USD when future airdrops are received). FLOCKS is a soon-to-be launched dividend token on Flamingo. By holding FLOCKS, users will be able to earn dividends in the form of FLM, more FLOCKS, or diversified dividends such as WBTC, WETH, FUSD, bNEO, and FLM. Keep an eye out for upcoming announcements regarding FLOCKS.

FLOCKS airdrop details

Make sure to read all ten points to fully understand the FLOCKS airdrop.

1. Users who migrate f- and p-assets don’t have to do anything else to receive the FLOCKS airdrops
2. FLOCKS will be airdropped into the same wallet a user migrates f- and/or p-assets from.
3. After FLOCKS launches, the FLOCKS airdrops will happen around the first of every month, over a two-year timespan. For example, if FLOCKS launches mid-October, the first airdrop will be around November 1st, and so on.
4. The Action Center will stay open on Flamingo indefinitely, with even more features planned for the future. However, users will have 1 year to migrate their f- and p-assets to receive the FLOCKS airdrops. Users who migrate after 1 year of the migration will not receive any airdrops.
5. Users who migrate before the first FLOCKS airdrop will receive all 24 airdrops (one airdrop per month for 2 years).
6. The FLOCKS amount received will be an equal amount for every monthly airdrop. For example, if a user receives 100 FLOCKS from the first airdrop, that user can expect to receive 100 FLOCKS from every other FLOCKS airdrop. This number will be calculated with the following calculation: (40,000,000 FLOCKS / 24 months) * % amount of total f- and p-assets that a user has migrated
   The percentage that a user has migrated is based on the total amount of assets that need to be migrated, NOT the amount that has been migrated.
7. Users who migrate later will only receive airdrops from that point forward. If a user misses any airdrops, the user will not receive the FLOCKS tokens they missed.
8. Users who receive FLOCKS airdrops are free to hold the FLOCKS (and earn dividends over time) or sell them on the market.
9. Up to 40 Million FLOCKS will be airdropped in total. FLOCKS will not be airdropped to users who haven’t migrated, and will be subtracted from the total amount airdropped.
10. If/when the hacker returns the stolen assets, all remaining FLOCKS airdrops will be discontinued and users will receive their portion of the returned assets.

New Flamingo Lend collateral tokens and interest rates

On week 39 of 2024, we’ll also launch new Flamingo Lend collateral tokens to expand upon Flamingo’s over-collateralized stablecoin protocol, FUSD, as well as drop some interest rates. This means users will have more options to put up as collateral to borrow FUSD.

1. We’ll add FLM as collateral with 1% interest and 50% Loan-to-Value (LTV).
2. We’ll change the (sunsetting) fWBTC LTV maximum to 20% (Margin Maintenance remains at 35%). This will drop to 0% over time.
3. The new WBTC collateral LTV will be 50%.
4. And we’ll also add WETH as collateral with 6% interest and 35% LTV, and raise it to 50% over time when there is more liquidity.
5. We’ll drop the interest rate on bNEO loans to 3% and the interest rate on FLUND loans to 1%.
6. We’ll remove the possibility of lending more using Legacy fWBTC.
7. We’ll monitor the LTV and do manual margin maintenance if needed. The reason being that the prices might be out of sync between Flamingo and the rest of the market during the recovery process, leading to only the security fund being able to perform margin maintenance. The Flamingo security fund will only do margin maintenance when the LTV is above 80–90%, depending on market conditions.

Flamingo Data Service

We’ll also release a new Flamingo Data Service. The Flamingo Data Service is a new way the Flamingo frontend interacts with RPC and API. The new Data Service reduces API calls by 50% and optimizes load times by 70%. Users will also be able to change RPC & API URLs. Faster, smarter, and more decentralized than ever.

Flamingo SDK

On top of all that, we’ll release the new Flamingo SDK. Flamingo SDK is a new infrastructure for making frontend calls to Flamingo smart contracts. It will be used on the Flamingo frontend and later released to the public so everyone can use it on their frontend/javascript.

Whew, if you’ve stuck with me and made it to the end, kudos to you. You’ve probably finished that coffee by now if you didn’t spill it in the pool. ☕

We’re really looking forward to this next Wave for Flamingo, and we hope you are too.

As always, we’ll see you in the pools.

Flamingo Finance is a DeFi platform built on the Neo N3 blockchain. Designed with Smart Functions for beginners to advanced cryptocurrency users, Flamingo makes DeFi easy for everyone.

Whether you want to stake in liquidity pools and earn yield, borrow crypto against your collateral, or simply trade from one token to another, Flamingo Finance is the place to be.

To stay in touch with us and keep up to date on all things Flamingo, please join us on Discord or Telegram, and connect with us on X (Twitter).