Flamingo Finance enables USDT to FUSD wrapping; reduces FLM minting rate

Flamingo Finance has announced the latest changes to its platform, including a new method for minting its over-collaterialized stablecoin, FUSD, as well as FLM minting changes.

$USDT to FUSD

Users can now directly mint FUSD with $USDT on Neo N3, providing an alternative to minting by taking a loan with Flamingo Lend or exchanging for FUSD with Orderbook+ or Convert. The reverse operation is also possible.

$USDT to FUSD and FUSD to $USDT is accessible via the Wrap & Unwrap interface under the Asset Actions tab on the web app. While minting from $USDT is not subject to limits, unwrapping from FUSD to $USDT depends on the contract’s $USDT reserves.

Reward changes

Flamingo has announced various changes to its FLM reward system, beginning with removal of bonus APR for users who stake in certain liquidity pools while holding an FUSD loan. This will occur on May 21.

Updated FLM minting allocations (Source: Flamingo)

The platform is also significantly reducing the daily FLM minting rate, from 146,880 to 86,400 FLM per day. Several pools will see changes to their allocation shares as part of this redistribution. Most notably, the SWTH-FUSD and $USDT-FUSD pools now have 0% allocations, and FLM-bNEO has been increased from 30% to 37%.

LP token loans

The team has announced its intention to develop support for using LP tokens as collateral within Flamingo Lend. This would allow users to borrow FUSD against their liquidity position. This development has no firm timeline, but it is expected to be deployed in the coming weeks.

Read the original announcement at the link below:
https://medium.com/flamingo-finance/flamingo-update-may-19-2025-94841850ca9a