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Flamingo Finance has announced the forthcoming relaunch of the Poly Network bridge and released a slew of updates. The updates include an Action Center to migrate f- and p-assets affected by the recent Poly Network hack, FLM token emission changes, and new collateral tokens and interest rates for Flamingo Lend.
In early September, Poly Network announced the complete termination of its cross-chain services following the third significant exploit the bridge service provider faced in as many years. In the most recent attack, the hacker absconded with more than US $3 million in digital assets, which caused the de-pegging of wrapped f- and p-assets from their underlying tokens.
Flamingo reports that Poly Network’s cross-chain bridge will reopen at some point between Friday, Sep. 27 and Monday, Sep. 29. The team also noted that Neo Global Development will assume responsibility for maintaining the bridge, which has had its contracts re-audited.
Flamingo has added an Action Center to the DeFi platform to assist users in preparation for the relaunch of the Poly Network cross-chain bridge.
Flamingo’s Action Center
The Action Center launched on Monday, Sep. 23, allowing users to migrate f- and p-assets to the new contracts that repair the 1:1 ratio of wrapped-to-underlying tokens. The Action Center helps users remove liquidity from affected legacy pools and migrate the assets and any collateral to the new contracts.
Flamingo has created a video demo to help walk users through the various processes. The launch of the Action Center is part of Flamingo’s Asset Support Initiative, designed to mitigate the negative impact of the most recent exploit on platform users.
In addition to the launch of the Action Center, Flamingo has also changed how FLM distributions will be made within the Neo ecosystem, and decreased the token’s daily emissions.
Wave Three FLM Distributions
In Nov. 2022, Flamingo announced the first of four “waves,” with updates to the platform’s LPs, FLM reward distributions, and new token listings. Changes to the second wave included the addition of a wide variety of LPs, and Bonus Pools that offered additional yield to FUSD minters who contributed the stablecoin against other assets in LPs. The yield determined how daily minted FLM was to be distributed into the ecosystem.
The wave three LPs launched on Sep. 24 and the new FLM yields were implemented accordingly:
- FLM-bNEO: 32% of daily FLM released
- WETH-FUSD: 9%
- GAS-FUSD: 9%
- FLM-FUSD: 9%
- WBTC-FUSD: 9%
- bNEO-FUSD: 9%
- USDT-FUSD: 9%
- FLM-WBTC: 7%
- BNB-FUSD: 1%
- SWTH-FUSD: 0.25%
- FLUND: 5.75%
In addition to the new yield allocations, daily FLM minting will be reduced from 357,142 tokens to 146,880.
Flamingo also applied changes to the type of collateral that FUSD can use when minting the stablecoin and interest rates.
Flamingo Lend and FUSD Interest Changes
FUSD is an over-collateralized stablecoin initially backed by FLUND, bNEO, or fWBTC, and can be minted on the Lend module of the Flamingo DeFi platform. It was modeled after MakerDAO’s DAI token, which collateralizes digital assets to ensure its peg is held to $1. When minting FUSD, a borrower must take out an over-collateralized loan and maintain its loan-to-value ratio to avoid liquidation. If the LTV gets too high, the protocol can exit a user’s position and claim all the underlying collateral used to mint FUSD.
Now, users can also leverage the FLM token when minting FUSD, requiring users to pay a 1% interest rate on borrowed capital. Additionally, fWETH can also be used as collateral at a 6% interest rate. The interest rate on bNEO collateral has dropped from 3% to 1%.
The full announcement can be found at the link below:
https://medium.com/flamingo-finance/flamingo-announces-wave-3-of-liquidity-pool-changes-f-and-p-asset-migration-new-collateral-c7b4ed972d04