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

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

  1. 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
  2. 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)
  3. who is this assigned team in proposal review?
  4. when is this DAO Offering completed?
  5. how to harvest YFIN and YMIN?
  6. 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
  7. Sounds so easy and so good to be true? What are the risks?
  8. The fuck is governance?
  9. 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

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Pub: 06 Feb 2021 09:21 UTC
Edit: 17 May 2021 13:39 UTC
Views: 200