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How to earn yield with Spark (Flare Network)?


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Not convinced about all this "utility" hype yet. Sounds like it's just a much better defi platform for trading between, well, useless coins. I guess it's a step forward technologically, and sure in a

These infographics show high-level overview of the Spark ecosystem (Flare Network). F-Assets agents Flare Time Series Oracle (FTSO) Data providers dApps (Flare Finance)

You misunderstood me. You are not relinquishing ownership of anything. XRP is the same as FXRP. Think of FXRP as a stable coin pegged to XRP. 1 FXRP is always 1 XRP. What Flare does is enable sma

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5 minutes ago, KarmaCoverage said:

Sorry, I don't have time to watch that, but I read the paper it's based on. I didn't pick up on anything explicit requiring a 1 to 1 lockup. If you can guarantee that, you don't need the 2.5x backing. Go back to David Schwartz taking about XRP-backed stablecoins. The whole idea is about using one currency to entirely back another one. You don't need to lock up the asset being represented. Instead you do it by over-collateralized the unit being represented with the native asset.

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6 minutes ago, brianwalden said:

I should add. The paper and that video can be interpreted the way you've interpreted it. I just don't think that's how it will actually be.

Yeah, I think when the origination of an FXRP happens... you the Originator have to send your XRP to an Agent's XRPL wallet.

When the FXRP is redeemed to you, it is sent to your XRPL wallet, from the Agent's XRPL wallet.

Edited by KarmaCoverage
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32 minutes ago, KarmaCoverage said:

Yeah, I think when the origination of an FXRP happens... you the Originator have to send your XRP to an Agent's XRPL wallet.

When the FXRP is redeemed to you, it is sent to your XRPL wallet, from the Agent's XRPL wallet.

Agreed. It doesn't say anything about what happens in between.

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34 minutes ago, brianwalden said:

Agreed. It doesn't say anything about what happens in between.

The Agents post the 2.5x FLR collateral on the Flare Network that enables the minting of FXRP. 

So both the actual XRP on XRPL (1:1) + the 2.5x FLR collateral underlying 1 FXRP.

If the redemption process fails, the XRP holder gets enough FLR to buy the FXRP and redeem again. Plus the Agent gets some of their FLR burned because they failed to complete the redemption XRPL TX.

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That doesn't say that the agent is required to hold onto the asset for the entire life of the F-asset. I would posit that there's nothing that could incentivize the agent to do so. I suspect that the agent is only required to have 2.5x the FLR for the duration of the transaction, not the duration of the total existence of the F-asset. That's the only thing that could possibly make sense. Otherwise no one would do it, it's just too expensive.

 

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9 hours ago, brianwalden said:

That doesn't say that the agent is required to hold onto the asset for the entire life of the F-asset. I would posit that there's nothing that could incentivize the agent to do so. I suspect that the agent is only required to have 2.5x the FLR for the duration of the transaction, not the duration of the total existence of the F-asset. That's the only thing that could possibly make sense. Otherwise no one would do it, it's just too expensive.

 

Ahh I see what you're saying. I guess the Agent could move the XRP backing the FXRP, but then they would be putting themselves at risk of losing more balue in FLR than the XRP, if the Agent is called upon to do a redemption and cant.

Also, I guess I've been thinking of an Agent as a smart contract that controls the XRPL wallet used in the FXRP origination & redemption process. 

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I think the agents are humans (using software - they're not actually going to be sitting there monitoring the ledgers). They're the workaround for not being able to have a smart contact on one ledger store the keys to perform transactions on another ledger. We'll see, this is just how I'm picturing it working.

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On 2/20/2021 at 4:51 AM, Ripley said:

XRP Ledger is already a fantastic payment system. At a high level, Flare enables Ethereum Virtual Machine compatible smart contracts for other blockchains, starting with XRP, LTC, and DOGE.

FXRP is a 1:1 representation of XRP. Which means that to mint 100 FXRP, you would have to “lock” 100 XRP on the ledger.

How do I "lock" my XRP?  I have Ledger Live as my wallet and I just pulled it up to check to see if there was something that I did not see previously about locking and I do not see anything about locking on Ledger Live.

 

What is the benefit of Flare?  Does it help you to earn more XRP?  I have XRP that I am holding long so locking is not an issue as long as at some point I  can unlock.  (Sorry to ask this question since it has probably been answered above on this thread, but to be honest I don't understand half of what you all are saying above.)

 

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19 minutes ago, Daniel8 said:

How do I "lock" my XRP?  I have Ledger Live as my wallet and I just pulled it up to check to see if there was something that I did not see previously about locking and I do not see anything about locking on Ledger Live.

 

What is the benefit of Flare?  Does it help you to earn more XRP?  I have XRP that I am holding long so locking is not an issue as long as at some point I  can unlock.  (Sorry to ask this question since it has probably been answered above on this thread, but to be honest I don't understand half of what you all are saying above.)

 

 

Think of it this way - you can put up 100 XRP on XRPL as collateral and get 100 FXRP issued on Coston (Flare’s blockchain) and that lets you participate in the Flare ecosystem. When you want your XRP back, you simply redeem whatever FXRP you have. “Locking” here means as collateral. That’s all.

Towolabs is working with Ledger on that functionality. There will be other wallets. Don’t worry.

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13 hours ago, Ripley said:

 

Think of it this way - you can put up 100 XRP on XRPL as collateral and get 100 FXRP issued on Coston (Flare’s blockchain) and that lets you participate in the Flare ecosystem. When you want your XRP back, you simply redeem whatever FXRP you have. “Locking” here means as collateral. That’s all.

Towolabs is working with Ledger on that functionality. There will be other wallets. Don’t worry.

Hmmmm... Interesting.  So it sounds like it could be something awesome.  But at the same time it also sounds like a way to get you and I to have a silly reason to not HOLD XRP.  If I am indeed hearing you right that I would have to relinquish ownership of my XRP to have "FXRP".    I say no thanks.  And here is the reason---

While many here would call me "tin foil hat", I will celebrate that in that I do have probably 20k worth of electronic equipment in faraday cages LOL.  But the tin foil hat that I am referring to here is that I believe that XRP's full scale intended use is to be a central bank digital currency for every central bank in the entire world.  Not saying that every country would no longer use their currency, just that all central banks will use XRP for bilateral trade instead of using SWIFT and the USD.  Now before someone calls me a troll or tin foil know this that Ripple has ALREADY partnered with somewhere over 40 central banks around the world and also the World Economic Forum has said that XRP would be used as a central bank digital currency in the "great reset".  

Here's the link from the WEF-  (Page 17 btw)

WEF_CBDC_Policymaker_Toolkit.pdf (weforum.org)

Also, Digital Perspectives on Youtube lays it out way better than I ever could.  If you are a holder of XRP and have not heard him take and listen to the last 50/100 of his videos. It'll be worth it.         

 

I am not saying that Flare is bad for the record.  I honestly don't know enough about it.  But I do think that XRP is the most valuable currency on the planet and the elite know it and they have engineered the SEC court case and the price drop / suppression to get the small fish to sell and not hold the currency that they are going to implement world wide to all central banks because the price is going to go so high that it is literally going to change who has wealth in the world and who does not since right now wealth is measured in dollars and the dollar is on its way out.  You are in the greatest wealth transfer in the history of mankind and if you hold XRP and don't know this then you need to look into what I am saying before you sell at $10.  Also, buy physical SILVER before it's too late.

I do hope that this Flare thing is a good thing for the ledger.  But I fail to see how it can make XRP any better.

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28 minutes ago, Daniel8 said:

Hmmmm... Interesting.  So it sounds like it could be something awesome.  But at the same time it also sounds like a way to get you and I to have a silly reason to not HOLD XRP.  If I am indeed hearing you right that I would have to relinquish ownership of my XRP to have "FXRP".    I say no thanks.  And here is the reason---

You misunderstood me. You are not relinquishing ownership of anything. XRP is the same as FXRP. Think of FXRP as a stable coin pegged to XRP. 1 FXRP is always 1 XRP.

What Flare does is enable smart contracts for XRP. It's a big deal. Have you noticed that XRP has been left out of the entire DeFi system and the Ethereum ecosystem ? Flare fixes that. And it fixes that not just for XRP, but also for any blockchain with good liquidity. It also adds a significant amount of liquidity by adding more pairs to XRP. 

It's your choice of course, but I highly recommend that you research this well. 

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23 minutes ago, Daniel8 said:

Hmmmm... Interesting.  So it sounds like it could be something awesome.  But at the same time it also sounds like a way to get you and I to have a silly reason to not HOLD XRP.  If I am indeed hearing you right that I would have to relinquish ownership of my XRP to have "FXRP".    I say no thanks.  And here is the reason---

While many here would call me "tin foil hat", I will celebrate that in that I do have probably 20k worth of electronic equipment in faraday cages LOL.  But the tin foil hat that I am referring to here is that I believe that XRP's full scale intended use is to be a central bank digital currency for every central bank in the entire world.  Not saying that every country would no longer use their currency, just that all central banks will use XRP for bilateral trade instead of using SWIFT and the USD.  Now before someone calls me a troll or tin foil know this that Ripple has ALREADY partnered with somewhere over 40 central banks around the world and also the World Economic Forum has said that XRP would be used as a central bank digital currency in the "great reset".  

Here's the link from the WEF-  (Page 17 btw)

WEF_CBDC_Policymaker_Toolkit.pdf (weforum.org)

Also, Digital Perspectives on Youtube lays it out way better than I ever could.  If you are a holder of XRP and have not heard him take and listen to the last 50/100 of his videos. It'll be worth it.         

 

I am not saying that Flare is bad for the record.  I honestly don't know enough about it.  But I do think that XRP is the most valuable currency on the planet and the elite know it and they have engineered the SEC court case and the price drop / suppression to get the small fish to sell and not hold the currency that they are going to implement world wide to all central banks because the price is going to go so high that it is literally going to change who has wealth in the world and who does not since right now wealth is measured in dollars and the dollar is on its way out.  You are in the greatest wealth transfer in the history of mankind and if you hold XRP and don't know this then you need to look into what I am saying before you sell at $10.  Also, buy physical SILVER before it's too late.

I do hope that this Flare thing is a good thing for the ledger.  But I fail to see how it can make XRP any better.

FXRP is XRP represented by a smart contract on the Flare Network. If you trust the smart contracts, it's redeemable for XRP whenever you want. So you could still hold your XRP as FXRP in your Flare wallet (that you have the keys for) and have it earn interest. Right now, the only way too do that is to turn your zerps over to a Celsius or Nexo.

At the very least, you should make sure to claim your free FLR. It's free and you've earned it by holding XRP for so long.

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14 hours ago, Ripley said:

 

Think of it this way - you can put up 100 XRP on XRPL as collateral and get 100 FXRP issued on Coston (Flare’s blockchain) and that lets you participate in the Flare ecosystem. When you want your XRP back, you simply redeem whatever FXRP you have. “Locking” here means as collateral. That’s all.

Towolabs is working with Ledger on that functionality. There will be other wallets. Don’t worry.

Do you know the answer?  If I create FXRP how quickly can I unlock them again to sell the xrp and FLR on the market?  My fear is that I will create FXRP and then want to sell my XRP and FLR at the top of the market before it crashes.  But I might get caught waiting to get the XRP decoupled to sell, meanwhile the price will crash?

Maybe there will be a market in FXRP - which will be similar to the price of 1 XRP plus 2 FLR tokens?

Edited by Julian_Williams
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