Jump to content

Flare networks - Spark token to XRP holders


Recommended Posts

10 minutes ago, yxxyun said:

but XRPL didn't support smart contract, so it's same as coinbase or uphold.

No, Codius was off to the side, and didn't really have the expense of a native digital asset TX fee, like XRP on XRPL. XRPL is a transaction network.

If I'm understanding this correctly, by enabling the smart contract controlled "agents" who are operating the XRPL wallet (like an exchange's XRPL wallet).. along with FXRP being pegged at 1:1 XRP:FXRP, it enables the extension of XRP's value to be injected into business logic run by smart contracts.

Edited by KarmaCoverage
Link to post
Share on other sites
  • Replies 540
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Because so many people seem confused about this whole claim process I am going to write a short explanation of what happens and why.  It’s not a how to...  others are doing that.  It’s a ‘what happens

Can be massive.

apologies if this has already been posted on this thread - great read if you enjoy Galgitron's style http://galgitron.net/Post/DeFi-Defined   

30 minutes ago, KarmaCoverage said:

Thus if Bob doesn't have additional capital to purchase Spark tokens he can either sell sufficient XRP for FXRP on an exchange such that he can redeem at least 33.34 FXRP or remaining in a purely decentralized environment if there are other agents in the FXRP system with sufficient excess collateral in he can mint sufficient FXRP and immediately redeem it.


I suppose this makes sense but in reality Bob would be selling Alices XRP 

 

also if Bob's collateral is not enough due to price shifts then all the agents could potentially have the same problem at once. buying FXRP shifts that requirement to another agent causing him/her to also need a higher spark reserves. 

If the value of total fxrp is greater than the value of all the spark then it's impossible to collateralize. 

If XRP were to rise then agents would buy spark to cover the collateral so in theory a rise in XRP price would result in a rise of spark price. 

I'm just thinking out loud. Crypto is a huge convoluted mess created simply because we don't trust each other. 

Link to post
Share on other sites
29 minutes ago, jargoman said:

I suppose this makes sense but in reality Bob would be selling Alices XRP 

also if Bob's collateral is not enough due to price shifts then all the agents could potentially have the same problem at once. buying FXRP shifts that requirement to another agent causing him/her to also need a higher spark reserves. 

If the value of total fxrp is greater than the value of all the spark then it's impossible to collateralize. 

Somewhere around this bit is where I got foggy. It appears to be a 3 layered digital asset stack, with XRP being the lowest common denominator (which is the most powerful position).

The "agents" are Market Makers, or Liquidity Providers. So that bit makes sense, they are the ones who are supposed to get paid to provide the Liquidity buffer between networks/assets.

29 minutes ago, jargoman said:

If XRP were to rise then agents would buy spark to cover the collateral so in theory a rise in XRP price would result in a rise of spark price. 

I'm not sure exactly how the market dynamics between the Spark token, the FXRP token, XRP  will unfold under different market conditions. I need to think about this more, but my gut took me in the same general direction as you.

I got the same "XRP dragging FXRP up, and thus through an increase in Utility value drive Spark up" with XRP rising. I need to understand the collateral / margin call process flow better to make any real judgement.

Edited by KarmaCoverage
Link to post
Share on other sites
2 hours ago, jargoman said:

I'm just thinking out loud. Crypto is a huge convoluted mess created simply because we don't trust each other.

Please, think out loud more often.  The air around here is thick and stale with people who are overinvested in this or that and are constantly on the verge of insanity.

Insight is a welcome change.

Link to post
Share on other sites
6 hours ago, KarmaCoverage said:

I got the same "XRP dragging FXRP up, and thus through an increase in Utility value drive Spark up" with XRP rising. I need to understand the collateral / margin call process flow better to make any real judgement.

Not necessarily. The agents (liquidity providers) can also redeem FXRP

Quote

The 2.5x collateral ratio must be maintained at all times. If the price of XRP increases against Spark, such that the value of Bob's collateral falls below 2.5 times the FXRP issued against it, then Bob has a limited time to either add more Spark tokens as collateral or buy and redeem FXRP tokens to bring his collateral ratio back in line. For example, say 200 FXRP tokens are issued against Bob’s 5000 Spark tokens and the price of XRP/Spark increases to 12. Bob now needs to either add 1000 Spark to the system or buy and redeem 33.34 FXRP to reduce his apportionment of issued FXRP to 166.66.

Basically Bob (the liquidity provider) sends FXRP that he owns to the Flare system. The consequence is Bob will pay himself on the XRPL the amount in XRP. Looking at the net sum, Bob thus loses the redeemed FXRP in order to maintain the collateral ratio. The amount of FXRP has decreased and the amount of collaterized Spark staid the same.

I would think it is better for Bob to increase the collaterized Spark. But that depends also what the risk appetite of Bob is. It feels a bit like 'double down' on the (not 100%) fact that the system will not break. If the system holds and Spark will retain its value, then in the end you can always reclaim your collaterizations.

btw: Cool stuff :-) I'll definitely dive in to it further. Not the least for it's interesting tech, but also because it will be airdropped and hence part of my investment portfolio - for which my sincere thanks. Hope it will be tremendously successful ;-)

Edited by jn_r
Link to post
Share on other sites
On 8/10/2020 at 9:17 PM, strikerjax said:

Looks like we may finally get some free tokens which may be worth something in the near future.

The airdrop date hasn't been announced yet.

https://flare.xyz/app/uploads/2020/08/Flare_Version_1.0.pdf

1008546480_ScreenShot2020-08-11at9_12_52am.thumb.png.633dfa2ab1a8c8ee84c0a6c7c894a3d5.png

 

Does the math here work out such that assuming you remove ~escrow+ your allotment is roughly equal to your current holdings of XRP?

Link to post
Share on other sites
On 8/2/2020 at 9:08 AM, 3GO3D said:

Is this what's been pumping XRP ?     

US Court Dismisses Claims Against XRP: Report Shows Ripple Paid Moneygram $15.1M in Q2

The Northern California District Court finds that claims against Ripple Labs and its token made by two investors cannot be proven.

The legal dispute, which began in May 2018, pitted Ripple Labs including CEO Brad Garlinghouse and disgruntled investors.

According to a report, the discontented investors wanted the court to determine whether the “native token XRP is, or is not a security by legal definition.”

The investors insist that “Ripple should have made a formal application to the U.S. Securities Exchange Commission (SEC) for their cryptocurrency XRP to become a security.”

Ripple is “adamant of the latter” and has maintained it is innocent of any legal wrong-doing throughout the proceedings.

According to court findings published online by Law360, the court made the following verdict:

The court found that the lead plaintiff failed to provide the necessary evidence in the courtroom to support multiple claims regarding XRP’s non-security status, Brad Garlinghouse’s personal holdings and monetary intentions, XRP’s sale strategy, as well as the company’s software products.

The court file concludes that “all of these accusations were ‘purported misstatements.’”

The Northern California District Court also said the plaintiff “failed to offer the factual allegations needed to show that Ripple and Mr. Garlinghouse’s statements were false when made”.

For its part, Ripple’s legal team had argued that all outstanding fraud claims were “unsupported leaps of logic.” In June 2019, Ripple’s legal team applied for a court dismissal of the claims.

In an unrelated matter, Moneygram reports it received $8.8 million net benefits from Ripple. The global remittance agency says the market development fees, which totaled $15.1 million is “partially offset by related transaction and trading expenses of $6.3 million.”

In its 2019 annual report, Moneygram defines the market development fees as the compensation for providing liquidity to Ripple’s On-Demand Liquidity (ODL) network

Ripple, which completed the acquisition of a stake in Moneygram in 2019, has so far paid Moneygram $43 million to provide liquidity for its ODL network.

 

 

25 minutes ago, KarmaCoverage said:

It says that if you have 1% of non-Ripple XRP you get 1% of Spark. 

assuming net non ripple is 45bn.  if that were to change it would change the ratio. 

I understand that will not happen in any significant measure but the math is what it is - it’s about 1:1 depending on what the ratio of ripple held xrp is. 

Link to post
Share on other sites
15 minutes ago, jf007au said:

So if you have your XRP on a Ledger Nano you need to put back on a compatible Exchange for the Snapshot?

If this is the case ... NOT happy to do so.   

Seems like too much work for little reward. I can imagine only a few die-hards jumping through all these hurdles for something you can't even sale because it's not on any exchanges. 

Link to post
Share on other sites
1 hour ago, jf007au said:

So if you have your XRP on a Ledger Nano you need to put back on a compatible Exchange for the Snapshot?

If this is the case ... NOT happy to do so.   

 

 

I think the answer here is no.  You have a wallet address that will be part of the snapshot.  I believe the problem with exchnages is the shared ledger addresses (destination tags) so the exchange has to agree to allocate appropriately.

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.