How to participate in Flamingo Finance? Step by step guide
Flamingo Finance is a protocol in Neo that focuses on DeFi use cases. Neo calls it protocol full-stack due to the many services that Flamingo provides to developers and users. You can participate in this protocol and benefit from the various functions.
Flamingo focuses on the best experience for DeFi users. Provides access to cryptocurrency assets on all networks based on Neo, Ethereum, Ontology, COSMOS SDK among others.
Additionally, the protocol fully distributes platform tokens (FLM) to participants.
Neo has created Flamingo Finance based on five components, each of which serves a specific purpose. They include:
- Wrapper– Asset gateway providing cross-chain services
- Swap: the liquidity provider
- Vault: the asset management service
- Perp– The perpetual contract trading platform (based on AMM)
- DAO: the fully decentralized governance mechanism
Launch in 3 phases
Flamingo Finance has designed a roadmap for the launch and development of the protocol. In each phase, some parts of the five-section protocol are activated.
Phase 1 – 09/25/2020 – 09/30/2020
The first phase of Flamingo's launch focused on the Vault and Swap components. After the development team released the Wrapper on September 23, 2020, they focused on the first phase of Vault.
In the first phase, Vault phase 1 (Mint Rush) was released. Users could earn FLM in that phase by betting Neo in the Vault. Cross-chain asset sharing became possible in that phase.
Phase 2 – 09/30/2020 onwards
The Flamingo development team released Swap and the second phase of Vault on September 30. Since then, users can bet LP tokens. This phase allowed users to provide liquidity in the Swap service. Now they can bet LP token (LinkPool) and receive FLM. Since then, it is no longer possible to bet on Neo to receive FLM.
Phase 3 – 10/28/2020 onwards
The third phase of the Flamingo launch offers additional options to users. It offers the minting option to users. Because phase 3 of the vault is released, users can coin FUSD ever since. They have to guarantee LP tokens in Vault and the minting option will be available.
The Perp and DAO components are the last components to be implemented in the Flamingo Finance protocol. These components will provide the FUSD statement and will also receive FLM upon participation for all users.
How to participate in Flamingo.Finance?
Flamingo Finance offers multiple ways to participate in the protocol. The NeoLite wallet, Metamask and Cyano are some of the most famous solutions available to participate.
You have to convert your tokens into NEP-5 based assets to participate in Flamingo. To do this, there is a "wrapper" process that has specific steps for each token and network.
With the Neoline wallet
NeoLine is one of the most accessible tools available to participate in Flamingo Finance. You must first download and install the NeoLine plugin for Chrome from https://neoLine.io. Then follow the steps below:
Import Neo Wallet to NeoLine: from the NeoLine plugin wallet in Chrome, click "Import an existing wallet". Then enter your wallet name, password, and private key. Then click "Import".
also can create a new wallet in NeoLine by clicking "Create a new wallet" in the plugin. Then you just have to choose the wallet name and password.
Do not forget to backup your private key by clicking on "Account details" and then selecting "Show private key".
Wrapping up NEO assets is a critical step in participating in Flamingo Finance. First, you must visit the flamingo.finance website and click on "Wrapper." Then follow the steps below:
- Click on the upper right corner to connect the NeoLine wallet.
- The NeoLine plugin displays a pop-up window. Click "Connect".
- Click "Select" on the Warp tab and select NEO. The page displays your NeoLine wallet address automatically.
- Enter the amount of NEO you wish to wrap and click "NEXT".
- Click "Confirm".
- The NeoLine wallet displays a chrome pop-up with the adjusted GAS rate. Click "Yes" to go to the next step.
- The wrapped nNEO will be displayed in the NeoLine wallet.
You can unwrap the wrapped nNEO tokens on the flamingo.finance website itself. Just click on the Unwrap tab on the Wrapper page and follow the steps similar to the above to convert nNEO to NEO tokens on unwrapping.
With the Metamask wallet
Participation in Flamingo Finance with the wallet Metamask It is also available through the Chrome plugin. You must first download and install the plugin from https://metamask.io/ in Chrome. Now follow the next steps:
1. You can import an existing Ethereum wallet into MetaMask by clicking Import Wallet in the plugin. You need to enter the initial phrase and wallet password to import.
2. The other option is to create a new wallet and keep your private key. Just click on "Create a wallet" and enter a new password for that. Don't forget to make a backup copy of your private key.
Metamask is one of the best wallets for managing Ethereum tokens and can be used to wrap and unwrap these types of tokens in Flamingo. To do so, follow the steps below.
Flamingo supports nwETH, nWBTC or nUSDT tokens among others, these assets will be obtained from the INCOME window of the Flamingo.Finance website as follows:
In this example we will see how to get the nwETH token:
- The first thing to do is pass your ETH to WETH, this can be done for example from Uniswap.
- Once you have your WETH tokens in your metamask wallet, go to the flamingo.finance website.
- In the INCOME tab, select Deposit in the WETH tokens section.
- When the transaction becomes effective, change the WETH tokens to fwETH and later to nWETH from that same window.
- Once these steps have been carried out, you will have your necessary nWETH to follow the process.
1. Open flamingo.finance and click on "Wrapper". After connecting the NeoLine wallet as in the previous steps, connect your MetaMask wallet.
2. You need to choose the specific Ethereum wallet that you want to connect to in the MetaMask pop-up wallet and click "NEXT".
3. After connecting NeoLine and Metamask, click "Select" in the Wrap section and select nWETH (or any other available Ethereum token).
4. Enter the amount of nWETH you want to wrap, and the form will fill in the amount of PnWETH received automatically. Click Next".
5. Confirm the following steps and the Metamask pop-up windows.
6. After a few moments, the contract interaction will appear in MetaMask. Set the GAS rate and click "Confirm".
7. Click "Confirm" to interact with the Neo network. You will be asked to enter a GAS rate in NeoLine that must be greater than 0.01. Then click confirm.
8. After the NeloLine processing is complete, click "Complete".
To unwrap Ethereum tokens, click Unwarp "Unwrap" on the wrap page and select the type of asset you want to unwrap. The steps are similar to unwrapping NEO tokens.
Add liquidity to a Pool
Once you have the tokens "wrapped" and in your NEO wallet, you must add liquidity to the pool with 2 of the tokens you have in your walletIn this way, you will get the necessary tokens to stake and obtain FLM.
- To add liquidity to a Pool go to the Swap tab and click on Pool.
- Select "Add liquidity" and choose the 2 tokens with which you want to add liquidity to the Pool.
- You must enter the same value of both tokens, for example if you want to add liquidity to the pnWETH / nNEO Pool and add 0.5 pnWETH, you must add as many nNEOs as necessary to equal the value of the 0.5 pnWETH at that time.
- Confirm the following windows and you will get the token with which you can stake and get FLM from the VAULT tab.
Other data to take into account
Flamingo Finance has many services and functions for users. It is good to get familiar with some of them to use them more intelligently.
What is Mint Rush?
Mint Rush was the first phase of the Flamingo launch. The team focused on incentivizing the community to participate in the new Mint Rush protocol. They launched a total of 50,000,000 FLM from 09/25/2020 to 09/30/2020 for those users who wrapped tokens.
What tokens do I get and what can I do with them?
You get new tokens by wrapping NEO, ERC-20, ONT, and other assets in Flamingo. For example, when wrapping NEO, you will receive nNEO that can be used in Vault and Swap. pnWBTC, pnUSDT, pnwETH, etc. are some of the others that you can receive when depositing ERC-20 tokens. They are useful in Flamingo modules.
Those users who wrap ONT will receive pONT which can also be used in Flamingo modules. Flamingo will add many other assets to this list gradually.
When and how can I recover the cryptocurrencies used?
Flamingo offers users the options of unwrapping and unwrapping in Wrapper and Vault 2. As described above, you can take a few steps to get back your wrapped or staked Flamingo Protocol tokens. The recovered tokens will be available in the connected wallets.
Flamingo Finance is a bold move from the NEO team to offer the best DeFi features in one place. They have combined some great features to entice users to the protocol and offer them tools to log into the system with their current holdings.
The final launch phase that makes it possible to receive FLM by participating can be constructive and result in considerable user growth.