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I watched some videos from the private beta test. DeFi is pretty new to me, so I want to make sure I understand what's going on. So the three basic features right now are wrapping outside coins to bring them into the Flare Network as F-assets, putting money into a liquidity pool, and farming (staking).

I didn't really see wrapping demonstrated since everyone got coins to use for the test, but I assume this is fairly straightforward. You put in the requiered coins and get the desired F-assets in return. Will there be a chance for us to use our FLR here to help wrap coins?

If you participate in a liquidity pool, you make money on the trading fees whenever that pool is used to make a swap. But you're at risk for impermanent loss if the price between the two assets is volatile. Cryptos are inherently volatile, so this seems risky to me, but I assume Uniswap is successful, so it can't be so risky that it doesn't work, right?

And then there's farming where you can stake your coins and get paid interest in YFIN in return. I thought Flare isn't a proof of stake network, so what does the network get from you staking your coins? What are they paying you for? Is there any risk of losing what you put into the stake?

 

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2 hours ago, brianwalden said:

Will there be a chance for us to use our FLR here to help wrap coins?

I’m not sure but would assume that would be likely. Maybe not Wrap but some Swap function.

2 hours ago, brianwalden said:

If you participate in a liquidity pool, you make money on the trading fees whenever that pool is used to make a swap. But you're at risk for impermanent loss if the price between the two assets is volatile. Cryptos are inherently volatile, so this seems risky to me, but I assume Uniswap is successful, so it can't be so risky that it doesn't work, right?

It was difficult to work this out in the closed beta as fees were not clear. I struggled with it. Some participants managed it okay though. Need to try and wrap my head around this in the Public Beta.

 

2 hours ago, brianwalden said:

And then there's farming where you can stake your coins and get paid interest in YFIN in return. I thought Flare isn't a proof of stake network, so what does the network get from you staking your coins? What are they paying you for? Is there any risk of losing what you put into the stake?

Have a look into Yield Farming

https://www.google.co.uk/amp/s/www.coindesk.com/defi-yield-farming-comp-token-explained%3famp=1

 

If you are going to take part in the Beta, the team on Discord are really helpful answering questions etc and walking people through things. There was a lot of good information in the closed beta channel while the competition was on. Quite a lot to trawl through though to find specifics.

Definitely worth taking part. You learn a lot more with hands on :) 

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