A Detailed Guide to Assets in Flamingo

nNEO

nNEO is the NEP-5 version of the NEO token. NEO is a UTXO asset on the Neo blockchain, with a minimum dividable unit of 1. In Flamingo, Assets must be dividable for calculation precision, and must be smart contract assets (NEP-5) to interact with smart contracts.

Users can convert between NEO and nNEO in Wrapper. The amount of input and output during wrapping and unwrapping has to be integers since the minimum unit of NEO is 1.

pONT

pONT is the NEP-5 version of the ONTd token after crosschain. ONT is a native smart contract asset with a minimum dividable unit of 1. To facilitate calculation precision and smart contract interaction, user can convert ONT to OEP-4 based smart contract asset ONTd via Wing Finance. The Wrapper module in Flamingo can facilitate bi-directional crosschain operation between ONTd on the Ontology Network and pONT on the Neo blockchain.

Users can convert between NEO and nNEO in Wrapper. The amount of input and output during wrapping and unwrapping has to be integers since the minimum unit of NEO is 1.

Crosschain assets on Ethereum

To maximize the fund utilization efficiency of our users, the team has designed Flamincome - a module on the Ethereum network that combines yield aggregation with value pegging. Flamincome users would not only gain yield on Ethereum, but also be able to wrap their assets and yield on Neo’s DeFi ecosystem.

How it works:

Users can deposit specific types of original ERC-20 assets. Flamincome will tap on other DeFi protocols within the Ethereum DeFi ecosystem to optimize yield for the user under the premise of ensuring asset safety.

After depositing original assets, users will obtain f-assets, as the proof to redeem back their deposited original assets plus the yields generated. The actual unit value of the f-asset is higher than that of the original asset as it comprises both the original asset and the yield, and its value will continue to rise.

The user can further use f-assets as the Collateralized Debt Position (CDP) to mint n-assets. The unit value of n-assets is 1:1 pegged to that of the original assets. After the first minting process, users can mint n-assets as the value of f-assets increases over time.

Via the Wrapper module in Flamingo, user can make use of Poly Network to wrap n-assets as crosschain pn-assets on the Neo blockchain and use them in all modules within Flamingo.

Original Assets in Flamincome

Flamincome currently supports 4 types of original assets: USDT, WBTC , WETH, and UNI-V2-ETH-WBTC(The LP Token of ETH/WBTC pool on Uniswap).

1. There is a withdrawal fee of no more than 0.5% implemented for USDT (both the principal and the yield) in order to ensure asset stability and prevent the impact of frequent fund transfers from eroding other users’ assets.

2. There is a 5% performance fee out of the yields of USDT, WBTC , WETH, and UNI-V2-ETH-WBTC to cover GAS fees on the Ethereum network.

f-assets

After depositing original assets, users will obtain f-assets, as the proof to redeem back their deposited original assets plus the yields generated. The actual unit value of the f-asset is higher than that of the original asset as it comprises both the original asset and the yield, and its value will continue to rise over time.

Since the unit value of f-assets is continuously increasing, the user will get a lower amount of f-assets when depositing original assets.

n-assets

The user can further use f-assets as the Collateralized Debt Position (CDP) to mint n-assets, so to use ERC-20 assets on other blockchains. Backed by f-assets whose value is continuously increasing, n-assets have a strong value support. The amount of mintable n-assets is calculated based on the unit value of f-assets, so that the unit value of n-assets stays 1:1 pegged to that of the original assets.

1. The user can mint 99.5% of the value of the deposited f-assets to n-assets. The remaining 0.5% will be used as safety deposits as an over-collateralization on the platform. The user will get back the 0.5% when he releases n-assets to withdraw the f-assets in full amount.

2. The amount of releasable n-assets / withdrawable f-assets have to be smaller or equal to the amount of the corresponding CDP value (deposited f-assets). Users can trade additional n-assets in secondary markets. This mechanism is consistent with CDPs on other platforms, such as MakerDAO.

3. The platforms reserves the possibility to adjust the collateralization ratio to incentivize CDP holders to withdraw f-assets, in order to realize a more stable value-pegging mechanism between n-assets and original assets.

pn-assets

Via the Wrapper module in Flamingo, user can make use of Poly Network to wrap n-assets as crosschain pn-assets on the Neo blockchain and use them in the Swap module in Flamingo, in order to trade, or obtain rewards from liquidity provision and LP token staking.

Liquidity support for n-assets

In order to ensure sufficient liquidity for n-assets, and a more stable value-pegging mechanism between n-assets and original assets, users can trade and arbitrage freely in Swap, which is offering good market depth for various trading pairs. In addition, users can also do small amount swaps on Uniswap for:

USDT/nUSDT

WBTC/nWBTC

ETH/nWETH