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Flamingo Flund Single-Stake Fund
We guide you through what the Flamingo Flund is, how it works, and how to invest in it.
First and foremost, the Flamingo Flund is a DEX-Traded Fund (DTF), similar to an Exchange-Traded Fund (ETF). Investors can invest FLM into the Flund to earn FLM yield. The Flund is non-inflationary and will not dump the token price once minting is done, as other single-stake pools have been known to do.
In the beginning, the Flund will get 20% of the FLM minting rewards distribution, and it will also get roughly 16% of all activities on the platform. When investors invest FLM in the Flund, they’ll receive FLUND tokens. The FLUND tokens will increase in FLM value since it represents the investor’s share of the Flamingo Flund. The Flamingo Flund grows every time a trade is made on Flamingo.
For example, when someone trades 1,000 GAS to NEO on Flamingo, they pay a fee of 3 GAS, of which 0.5 GAS (~16%) goes to the Flund. When investors enter or exit (buy or sell) the Flund, the assets that have accumulated from fees, etc. will be converted to FLM (which we call a settlement) if certain conditions are met. The conditions for converting a non-FLM asset in the Flund upon settlement is that the value of the asset in question must be above 100 FLM. The Flund therefore will create a buying pressure on FLM since it takes all incoming assets and sells them to buy FLM.
The Flamingo Flund works in the following ways:
- Investors buy a portion of the Flund DTF using FLM. Any token can be used to buy, and will be automatically converted to FLM to buy FLUND tokens.
- The Flund gets 20% of minting rewards in the form of FLM.
- The Flund gets 16% of all Swap fees from the platform.
- The Flund gets 100% of all order book trading fees (after order book launch).
- The Flund gets 40% from margin maintenance penalties on loans from Flamingo Lend.
- The Flund gets 47% from interest paid on loans from Flamingo Lend.
- All income is converted to FLM when investors enter and exit the Flund. Note that only assets with an accumulated value of more than 100 FLM will be converted to save GAS costs.
- Yield is not claimable but added to the Flund, and therefore investors share value.
- Investors get their yield in the form of increased FLM when exiting the Flund.
- There is a 2% exit fee to discourage short term investors and possible exploits. The Flund collects 100% of these fees.
There are a number of ways to invest in the Flamingo Flund. We'll walk you through one of them.
Things you will need:
- A computer with an installed internet browser
- A Neo N3 wallet
- Assets to trade to get FLUND tokens
- Neo N3 GAS tokens for transaction fees
2. For this example, we have chosen to use a NEON wallet. Select NEON.
3. A new tab will open on your bowser. Select an option to connect your NEON wallet to Flamingo. We have chosen to connect via Deeplink. Make sure your NEON wallet is open and you are logged in. Select Link Wallet.
4. Go to your NEON wallet and select the green checkmark to confirm the connection to Flamingo.
5. Your NEON wallet is now connected. Go back to Flamingo and select Buy FLUND Tokens.
6. On the Asset Actions tab, the Buy & Sell FLUND action and BUY option will already be selected. On the Buy using dropdown, select which asset you would like to trade for FLUND tokens. In this case, we have chosen FLM.
7. Enter the amount of the asset you want to trade. You will see how many FLUND tokens you will receive in return. Adjust your slippage and deadline settings (optional), and select Continue.
8. On the Confirm Transaction screen, make sure you agree with the trade details and exit warning. If so, check the acknowledgement box and select Buy FLUND.
9. Go to your NEON wallet. See the transaction fee to be paid in GAS. If you agree, select the green checkmark to confirm the transaction.
10. Go back to Flamingo. Your FLUND tokens should have been bought successfully. Select Close.
11. You will now see your number of FLUND Tokens, your Invested Value, your Earned FLM, your FLM Gain, and your Total Value in your FLUND dashboard.
That's it! Congratulations. You are now an investor in the Flamingo Flund.