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How to earn yield with Spark (Flare Network)?


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2 minutes ago, Julian_Williams said:

Do you know the answer?  If I create FXRP how quickly can I unlock them again o 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 !XRP plus 2 FLR tokens?

The speed would depend on the networks you are wrapping in between. Both XRPL and Coston (Flare's blockchain) are super fast, so I don't expect it to take more than a few seconds. The speed of the network is one of the reasons why LTC was chosen by the Flare Foundation after XRP. 

As part of a private beta, I have experience wrapping tokens between an Ethereum test network and a Coston test network. In that case, Ethereum was extremely slow and took a lot of time for the tokens to show up. Also it was a test network, so not the real world.

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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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10 minutes ago, Ripley said:

The speed would depend on the networks you are wrapping in between. Both XRPL and Coston (Flare's blockchain) are super fast, so I don't expect it to take more than a few seconds. The speed of the network is one of the reasons why LTC was chosen by the Flare Foundation after XRP. 

As part of a private beta, I have experience wrapping tokens between an Ethereum test network and a Coston test network. In that case, Ethereum was extremely slow and took a lot of time for the tokens to show up. Also it was a test network, so not the real world.

this is really good news

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28 minutes ago, Julian_Williams said:

this is really good news

It's hard for me to explain how super fast Coston is. People are used to Ethereum's slowness and high gas fees and assume that's how things are supposed to work. I expect a shell shock when it's launched, and some of the more popular functionality from Ethereum gets ported to Coston with little effort.

Connecting to Coston is literally just adding a network to Metamask - it'll live side by side to the other Ethereum MainNet and TestNet networks. That's it. 

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15 hours ago, Julian_Williams said:

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?

 

15 hours ago, Ripley said:

The speed would depend on the networks you are wrapping in between. Both XRPL and Coston (Flare's blockchain) are super fast, so I don't expect it to take more than a few seconds. The speed of the network is one of the reasons why LTC was chosen by the Flare Foundation after XRP. 

As part of a private beta, I have experience wrapping tokens between an Ethereum test network and a Coston test network. In that case, Ethereum was extremely slow and took a lot of time for the tokens to show up. Also it was a test network, so not the real world.


I am not sure of this but I believe it is NOT going to be done at the block speed.  It will initiate a “function” (really a note saying where and how much) that is passed to the agents that provided the FLR collateral.   One part of the message is the block number that the XRP must be returned by.

I presume that is going to be at least tens of minutes and possible many hours.  A fast agent might do it immediately and a slow one by the max time allowed.

A failure by the agent to send will trigger a transfer of FLR plus a small compensation fee to the Flare wallet that will be equivalent in value to the XRP owed.  So you will end up doing the swap yourself if the redemption fails but you shouldn’t miss out in value depending on volatility and your response time.

I must admit that I’m not enamoured of the idea of getting compensated by a percent or so when the volatility could be much higher.

I guess time will tell how good this system operates.  I could be wrong about all that...  if so please correct me.

 


On another note...   I admire your optimism Julian...    planning on being one of the very few who accurately time a peak.   :) 

 

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2 hours ago, BillyOckham said:

 


I am not sure of this but I believe it is NOT going to be done at the block speed.  It will initiate a “function” (really a note saying where and how much) that is passed to the agents that provided the FLR collateral.   One part of the message is the block number that the XRP must be returned by.

I presume that is going to be at least tens of minutes and possible many hours.  A fast agent might do it immediately and a slow one by the max time allowed.

A failure by the agent to send will trigger a transfer of FLR plus a small compensation fee to the Flare wallet that will be equivalent in value to the XRP owed.  So you will end up doing the swap yourself if the redemption fails but you shouldn’t miss out in value depending on volatility and your response time.

I must admit that I’m not enamoured of the idea of getting compensated by a percent or so when the volatility could be much higher.

I guess time will tell how good this system operates.  I could be wrong about all that...  if so please correct me.

 


On another note...   I admire your optimism Julian...    planning on being one of the very few who accurately time a peak.   :) 

 

Agents will be programs. Not people. 

As I mentioned above, I’ve already used this mechanism to swap ERC20 tokens on the test networks. There’s no human element involved. The speed is dependent on how fast the source and the target blockchains are. 
 

Tokens on the source blockchain are sent to a wallet/smart contract on that blockchain aka “locked” and equivalent tokens are released from a smart contract/wallet on the target blockchain. That’s it. Ratio is determined by the exchange rates maintained by the FTSOs

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19 minutes ago, Ripley said:

Agents will be programs. Not people. 

As I mentioned above, I’ve already used this mechanism to swap ERC20 tokens on the test networks. There’s no human element involved. The speed is dependent on how fast the source and the target blockchains are. 
 

Tokens on the source blockchain are sent to a wallet/smart contract on that blockchain aka “locked” and equivalent tokens are released from a smart contract/wallet on the target blockchain. That’s it. Ratio is determined by the exchange rates maintained by the FTSOs

Thanks for setting me straight....   but are you sure that ALL agents will be programs?  
 

The doco I’ve seen so far doesn’t seem to guarantee that.  In fact it didn’t suggest that at all...   hence my mistake.

And to follow up...   what is stopping humans from manually participating?

 

But I am pleased to accept from your test experience that it will be programs doing the swaps.  Thanks for letting us know.

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10 minutes ago, BillyOckham said:

Thanks for setting me straight....   but are you sure that ALL agents will be programs?  
 

The doco I’ve seen so far doesn’t seem to guarantee that.  In fact it didn’t suggest that at all...   hence my mistake.

And to follow up...   what is stopping humans from manually participating?

 

But I am pleased to accept from your test experience that it will be programs doing the swaps.  Thanks for letting us know.

A mix of agents that can be either automatic or semi-automatic (with human interaction) gives you the best of all with more options on the shelve .... But I expect that in a modern fintech environment and in most cases it will be full automatic, of course if needed when all AML/KYC checks can give the actions a go, ..... within a few seconds

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6 hours ago, BillyOckham said:


On another note...   I admire your optimism Julian...    planning on being one of the very few who accurately time a peak.   :) 

 

I have no fixed exit strategy yet, only some broad predictions:

I think we are in the foot hills of the mother of all bull cycles.  Money will not just be sucked in by:

  • News of profits FOMO
  • Easier to use exchanges
  • Better understanding of what benefits DLT will bring
  • Staking opportunities for savings

it will also be driven in by

  • A crisis in confidence in fiat money (fear of Hyperinflation)
  • FOF (Fear of the Future (made that up :)))
  • Fear of Governments stealing their savings

One more prediction is that the BTC tops before the Alt market

I find it impossible at this stage to know what are sensible targets to leave.  I will play it by watching which predictions come true and then exit some percentages as mature in a maturing market.  I might register a subscription of Santiment to get better social media profiles of how the markets are behaving, whose pulling out and whose left in themarekt. I am sure I will still have some stock in when the market reaches the top and crashes....but that was always my plan. 

 

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If you are operating an agent that is providing FLR collateral for the minting of F-assets...   how do you exit or hand over the reigns to another agent?  Was that part of the testing?

 

If you did that do you lose all the fees that you gained by having to pay the replacement agent?

If that’s true does the agent commitment seem onerous?

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42 minutes ago, BillyOckham said:

If you are operating an agent that is providing FLR collateral for the minting of F-assets...   how do you exit or hand over the reigns to another agent?  Was that part of the testing?

 

If you did that do you lose all the fees that you gained by having to pay the replacement agent?

If that’s true does the agent commitment seem onerous?

I don't think we know the details, but here's a general idea of how I think it will work. This is just a guess. Anyone can be in the liquidity pool to mint a particular F-asset. As long as the pool has more than 2.5x the value of the F-asset in existence, it can mint new F-assets.

But agents need to have at least 2.5x in the pool for each transaction they act as an agent for. If they don't complete the transaction successfully, it's their FLR that is used to make it right and pay a penalty. But, I think that once the transaction is over, their obligation is over. At that point, the pool as a whole is what's backing the issued F-assets.

So I think if an agent wants to stop being an agent all they would need to is remove themselves from the agent pool. This is all just my personal speculation, but it seems like it could plausibly work.

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9 minutes ago, brianwalden said:

I don't think we know the details, but here's a general idea of how I think it will work. This is just a guess. Anyone can be in the liquidity pool to mint a particular F-asset. As long as the pool has more than 2.5x the value of the F-asset in existence, it can mint new F-assets.

But agents need to have at least 2.5x in the pool for each transaction they act as an agent for. If they don't complete the transaction successfully, it's their FLR that is used to make it right and pay a penalty. But, I think that once the transaction is over, their obligation is over. At that point, the pool as a whole is what's backing the issued F-assets.

So I think if an agent wants to stop being an agent all they would need to is remove themselves from the agent pool. This is all just my personal speculation, but it seems like it could plausibly work.

Thanks for that.   Yeah that makes sense and the effect of net agent flow likely wouldn’t normally amount to enough to endanger the pool size.

However...  that raises the black swan question.  If the agents are only locked for the minting time and for some reason they all want to leave en masse what protects the F-Asset holders from the erosion of their backing?

 

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