Flare Finance Notes
This note: https://rentry.co/flare-finance-notes
Short Paper: https://flr.finance/static/media/FFShortPaper.b61a58ee.pdf
Flare Network WP: https://flare.xyz/app/uploads/2020/08/flare_v1.1.pdf
Flare Finance Eco Map: https://prismic-io.s3.amazonaws.com/flare-website/0a397b8d-63fc-41e2-8c26-ff7cbe5bd232_FF+Ecosystem+Map.pdf
Flare Finance Docs: https://flarefinance.medium.com/flare-finance-peeling-back-the-first-layers-ac36078705df
Flare Finance Wiki: https://everipedia.org/wiki/lang_en/flare-finance
- Network Layers
- Products
- Tokenomics
- YieldFlare Token
- YieldFin Token
- YieldMine Token
- Governance
- Voting and Weight Structure
- Proposals
- Distribution
- DAO Offering (YieldFlare)
- Yield Farming (YieldFin, FlareLoans, FlareMutual)
- Yield Mining (YieldMine)
- Question
- Resources
Network Layers
XRPL (protocol) -> Flare Network (DeFi L2) -> Flare Finance (app)
Products
- FlareX
- the trading exchange (spot/margin)
- maker/taker fee: 0.0075%
- governance by YFIN and YFLR holders (vote for new listing, whitelistings, etc.)
- FlareFarm
- for staking coins
- holders of YFLR, FLR, FXRP, FUSD can participate to yield farm YFIN
- FlareUSD
- the stablecoin
- pegged to USDT, USDC, DAI
- holders of FUSD can issue bonds, cert of deposits, etc.
- earn by APRs
- FlareLoans
- loan issuance product
- FlareMutual
- the mutual fund
- allows to insure risk against smart contract fails, hacks and bugs
- holders of FLR, FXRP, YFLR, YFIN, FUSD can participate and collectively back projects applying for insurance
- members of mutual earn shares of the fee pool from project requesting insurance + additional distribution of YFIN
- each project create different mutual pool to form mutual fund
- each pool provides oversight of project
- mutual fund provides oversight of all pools
- FlareMine
- yield mining
- for bitcoin/ethereum mining rigs to mine Spark (FLR)
- miners contributes hashrate to a mining pool -> mines btc/eth -> swaps for FLR + YMIN -> rewards the miners
Tokenomics
- 3 tokens: YFLR, YFIN, YMIN
- Spark (FLR) and Trustless XRP (FXRP) (?)
YieldFlare Token
- YFLR
- main platform token
- main utilization within FlareX and FlareFarm
- use-cases:
- fee replacement token (FlareX)
- staking token to farm YFIN
- secondary governance token to vote
- supply of YieldFlare (YFLR)*
YieldFin Token
- YFIN
- main governance token
- utilized across all 6 products
- focus on governance and reward structure
- use-cases:
- main reward token on FlareFarm - result of staking in dist pools
- distribution token for FlareLoans and FlareMutual
- can be staked to earn YFLR
- to vote on governance proposals
- supply of YieldFin (YFIN)*
YieldMine Token
- YMIN
- main rewards token
- utilized on FlareMine and FlareX
- use-cases:
- rewards token for providing mining power to FlareMine Pool
- mining rate multiplier on FlareX
- can be burned to increate the rate at which one mines YFLR for staking YFIN
- sold on the market to traders (in lowering trading fees)
- supply of YMIN will adapt with the amount of miners who
- join the network
- weight gap between miners in hashpower contributions
- proposals submitted by community
Governance
- automated, decentralized proposals and voting
- amount of votes determined by amount of YFIN and YFLR voter holds
- both tokens enforce governance
Voting and Weight Structure
- voting is a privilege awarded to YFIN and YFLR holders
- is signing a transaction with your wallets that reads your current balance and assigns equivalent amount of votes to your option of choice
- YFLR carries 1x vote weight
- YFIN carries 10,000x vote weight
- governance proposals examples: fee schedules, mining rates, reserve pools, etc.
- YFLR carries option to vote:
- new listings and white listing on FlareX
- on how the 10,000,000 reserved YFLR is utilized in the future
- YFIN carries option to vote:
- on how the 1,000 reserved YFIN is utilized in the future
- carries the benefit of permanently being utilized in each product to come
Proposals
- proposals are an option to YFIN or YFLR holders
- cost a fee of 250 YFLR or 0.0025 YFIN to create
- fee is sent back to reserve pool for future utilization
- once is submitted, cannot be taken back
- can only voted to be approved or denied
- difference types of proposals = different quorum requirements
- quorum requirements vary from 10% to 70% quorum
- 100% quorum is when the total token supply circulating has voted
types of proposals | reviewed by |
---|---|
fee schedule | smart contract |
mining rate | smart contract |
governance | assigned team |
listing | smart contract |
whitelisting | smart contract |
payment (transaction) | smart contract |
development | assigned team |
security | assigned team |
marketing | assigned team |
Distribution
- handled via smart contracts
- including initial DAO Offering of YieldFlare Token
- Farming and Mining will begin after DAO Offering completed
- then YFLR, FLR, FXRP, FUSD holder can begin harvesting YFIN and YMIN
DAO Offering (YieldFlare)
- distribution of initial 40M YieldFlare via Initial DAO Offering
- holders of FLR will receive airdrop proportioned amount of 40M DFLR (DAO Flare)
- DFLR can be swap for YFLR
- have 7 days after receiving DFLR to swap to YFLR (!!)
- after 7 days, unclaimed YFLR will be burned or moved to reserve pool <-- first governance proposal
- several millions are reserved for the team for marketing, dev, organizational costs*
Yield Farming (YieldFin, FlareLoans, FlareMutual)
- distribution of 8000 YieldFin Tokens to the FlareFarm is conducted over a period of one year from the moment mining begins
- equates to: ~21.9178 YFIN/day or 0.00025-0.00051 YFIN/block
- distribution of 1000 YieldFin Tokens to the FlareLoans Pool is conducted over a period of one year from the moment collateralization begins
- equates to: ~2.7397 YFIN/day or 0.000031-0.000063 YFIN/block
- distribution of 1000 YieldFin Tokens to the FlareMutual Pool is conducted over a period of one year from the moment collateralization begins
- equates to: ~2.7397 YFIN/day or 0.000031-0.000063 YFIN/block
- reserved 1000 YFIN Tokens (+ proposal fees) automatically unlocked and added to mining pool upon completion of initial mining period
- any time before end of initial mining period, after at least 25% of supply is mined,
- community can begin to utilize governance platform to vote on how to use reserve pools
Yield Mining (YieldMine)
- distribution of YieldMine Token (YMIN) ongoing until all YFLR is mined and circulating
- supply is indefinite, to grow until all YFLR is mined at rate of 100,000 YMIN/day or 1.16-2.32 YMIN/block
- mining only last for 1 year, the supply will reduce based on deflationary mechanisms
- end of mining, max supply of YMIN should be ~75M tokens
- supply will decrease as holders burn YMIN to increase mining rate to mine YFLR
*see short paper https://flr.finance/static/media/FFShortPaper.b61a58ee.pdf
Question
- what is the use of FLR and FXRP?
- Flare Finance (a different entity building on the flare network) gives Spark (FLR) and XRP (FXRP) purpose
- best way to fully utilize the platform and earn passive income in the platform?
- They have all these products (I believe an app/wallet similar to XUMM is in dev)(read the very short pdf there is more important info, 3 more tokens)
- who is this assigned team in proposal review?
- when is this DAO Offering completed?
- how to harvest YFIN and YMIN?
- what is this agents, FTSO and stuff?
- FTSO (an oracle provider) example: https://www.ftso.eu/
- Agents: those who "converts" assets to an F-assets (citation needed)
- looks like another form of earning passive income
- Sounds so easy and so good to be true? What are the risks?
- The fuck is governance?
- are mining/farming/staking the same thing relatively speaking?
- Yes
- but sha256 mining is not the same as staking
Answers by anon on /xsg/ and Flare Network/Finance Telegram group. Will update from time to time.
Last updated: 2021-02-11 19:32:13
Resources
- This note: https://rentry.co/flare-finance-notes
- Committee Selection is More Similar Than You Think: Evidence from Avalanche and Stellar: https://arxiv.org/pdf/1904.09839.pdf
- Coston testnet: https://github.com/flare-eng/coston
- Flare Consensus Protocol: https://flare.xyz/app/uploads/2019/11/FCP.pdf
- Flare Network telegram: https://t.me/FlareNetwork
- Flare Finance telegram: https://t.me/FlrFinance
- Flare finance beta test: https://flarefinance.medium.com/welcome-to-the-flare-finance-beta-test-f0c2796af444
- How can I use FLR? https://t.me/FlareNetwork/68543