Seoulite Posted May 1, 2021 Share Posted May 1, 2021 There seems to be a lot of confusion in people about what FXRP is, so I thought I’d try to clear this up. FXRP is XRP represented in the Flare block chain. It is a claim to locked up XRP. FXRP has exactly the same value as XRP. You will be able to unlock your XRP at any time. This value is secured by staked FLR tokens, which will be more than 100% of the total value of your FXRP. In fact, 250% over collateralization is a number I’ve seen. The reason to create FXRP is to use it in smart contracts. If for some reason the smart contract failed and you couldn’t access your FXRP, you would receive the exact same value of your XRP in FLR, which you could then immediately swap for XRP. In other words you are not losing possession of any value. The only thing you lose is the fee you pay to create the FXRP, which is currently being set at 5% although I’ve heard it could be lower. If you create FXRP, you will receive daily yield in FLR from the General Rewards Pool of more than 12 billion FLR. This has been set up to incentivize people to create F-assets. The system will pay you to create them. So, to be clear: if you create FXRP you are not losing your XRP. You are locking it up. The value that you have will always be secured and redeemable. FXRP is not some different token that you are going to buy and sell. It is not a replacement for your XRP. It is literally just XRP that you can use in smart contracts on Flare, and get paid while you are doing it. Hope that clears things up a bit. thinlyspread, Flintstone, Yorkies and 4 others 5 2 Link to comment Share on other sites More sharing options...
BillyOckham Posted May 1, 2021 Share Posted May 1, 2021 Yes that 5%... incredibly high in my opinion. Too high really. A big chunk of your APY is gone before it even starts. I’m hoping that is a lot more like 0.33% or less when it goes live. Hydnum and Kiwi 2 Link to comment Share on other sites More sharing options...
Seoulite Posted May 1, 2021 Author Share Posted May 1, 2021 1 hour ago, BillyOckham said: Yes that 5%... incredibly high in my opinion. Too high really. A big chunk of your APY is gone before it even starts. I’m hoping that is a lot more like 0.33% or less when it goes live. I’ve heard that 5% was just floated as a possibility. I think your reaction is not unusual so hopefully they will reconsider it a bit. Hydnum and BillyOckham 2 Link to comment Share on other sites More sharing options...
BillyOckham Posted May 1, 2021 Share Posted May 1, 2021 46 minutes ago, Seoulite said: I’ve heard that 5% was just floated as a possibility. I think your reaction is not unusual so hopefully they will reconsider it a bit. If a bank wanted to charge me $100 for a two thousand dollar deposit I would not even consider it. This is an automated bot/smart contract so if it can’t be done for fractions of a percent then there is something wrong with the whole setup. imho. Link to comment Share on other sites More sharing options...
brianwalden Posted May 1, 2021 Share Posted May 1, 2021 8 hours ago, BillyOckham said: If a bank wanted to charge me $100 for a two thousand dollar deposit I would not even consider it. This is an automated bot/smart contract so if it can’t be done for fractions of a percent then there is something wrong with the whole setup. imho. The agents have to paid for minting the F-assets. 5% is the number used in the white paper, that doesn't necessarily mean it will be 5%. White papers are about the abstract ideas, not the specifics. We'll find out the official rate when it gets closer to launch. That said. I think once enough F-assets have been minted, there will be people willing to sell their FXRP for XRP. There will be competition between people wanting to sell existing FXRP and the cost of minting new FXRP. These Flare guys are smart, they seem to be two steps ahead of everyone else. I wouldn't be surprised if the actual minting fee will be based on supply and demand. For reference, Trustline has already announced its system for balancing the yield rate for putting up funds to back its dollar stablecoin. It's based on the minted supply vs the demand for new loans. Personally I think it's ingenious, it's a new approach that I haven't seen in existing DeFi. I know the trustline guy is working closely with Flare. I'm sure these ideas are at least being floated. JoeBishop, Seoulite and agonyaunt 3 Link to comment Share on other sites More sharing options...
JASCoder Posted May 1, 2021 Share Posted May 1, 2021 12 hours ago, Seoulite said: FXRP is XRP represented in the Flare block chain. It is a claim to locked up XRP. FXRP has exactly the same value as XRP. You will be able to unlock your XRP at any time. This value is secured by staked FLR tokens, which will be more than 100% of the total value of your FXRP. Howdy friend Seoulite !! Thanks for your efforts to help grow our knowledge base ( re: the quote above ) - In the FF beta 1, when I wrapped the play USDT into FUSD, I don't recall that action locking up any equivalent amount of FLR. So why would wrapping up XRP into FXRP necessitate locking up FLR tokens ? Given that my FXRP could be "unwrapped" at anytime, why would it be necessary to additionally lockup some FLR as well ? Forgive me if I'm miss-remembering or missing the obvious. Cheers. Link to comment Share on other sites More sharing options...
brianwalden Posted May 1, 2021 Share Posted May 1, 2021 Wrapping is a service provided by Flare Finance. It's different from an F-asset that's entirely backed by FLR and native to the Flare Network. I participated in the first round of the public Flare Finance beta test. The prices aren't realistic, their main concern was testing that everything worked correctly. I think we have to wait until closer to launch to see what prices will be. thinlyspread and agonyaunt 2 Link to comment Share on other sites More sharing options...
BillyOckham Posted May 1, 2021 Share Posted May 1, 2021 2 hours ago, brianwalden said: The agents have to paid for minting the F-assets. 5% is the number used in the white paper, that doesn't necessarily mean it will be 5%. White papers are about the abstract ideas, not the specifics. We'll find out the official rate when it gets closer to launch. That said. I think once enough F-assets have been minted, there will be people willing to sell their FXRP for XRP. There will be competition between people wanting to sell existing FXRP and the cost of minting new FXRP. These Flare guys are smart, they seem to be two steps ahead of everyone else. I wouldn't be surprised if the actual minting fee will be based on supply and demand. For reference, Trustline has already announced its system for balancing the yield rate for putting up funds to back its dollar stablecoin. It's based on the minted supply vs the demand for new loans. Personally I think it's ingenious, it's a new approach that I haven't seen in existing DeFi. I know the trustline guy is working closely with Flare. I'm sure these ideas are at least being floated. Thanks yeah... I already get all that. My point remains. IF the white paper DID represent the real world cost (and I would point out that at the time of releasing it they surely would have spent a long time thinking about and preparing for the nascent network so why not put in at least a first approximation of the expected amount) then it would be a big barrier to ‘f’-ing your assets in my opinion. It would indeed, be ‘f’-ed. The agents need recompense, but like all things priced too high... a lower price would earn more income. The part I did not already know was the Trustline reference... maybe I should look that up. Or I just could be my lazy self and wait and see. But I’m extremely reluctant to put an asset into an expensive service to gain unproven returns. I doubt that I’m alone in that. Link to comment Share on other sites More sharing options...
brianwalden Posted May 2, 2021 Share Posted May 2, 2021 13 hours ago, BillyOckham said: Thanks yeah... I already get all that. My point remains. IF the white paper DID represent the real world cost (and I would point out that at the time of releasing it they surely would have spent a long time thinking about and preparing for the nascent network so why not put in at least a first approximation of the expected amount) then it would be a big barrier to ‘f’-ing your assets in my opinion. It would indeed, be ‘f’-ed. The agents need recompense, but like all things priced too high... a lower price would earn more income. The part I did not already know was the Trustline reference... maybe I should look that up. Or I just could be my lazy self and wait and see. But I’m extremely reluctant to put an asset into an expensive service to gain unproven returns. I doubt that I’m alone in that. Honestly, it's probably better to wait and see. All this Flare stuff will be a lot more simple when there's actually something concrete to use and we know what that actual expenses and yields are. Seoulite and BillyOckham 2 Link to comment Share on other sites More sharing options...
xrpthestandard Posted May 3, 2021 Share Posted May 3, 2021 Thanks @Seoulite for your explanation. However, no matter how many explanations I read and how many videos I watch, I still don't understand anything of this whole Flare network :-( How do you lock up XRP exactly, to get FXRP? Do you transfer your XRP to an agent for example? And how can you get passive income exactly, what do you need to go? I read about voting for example, how do you do that? Can comeone provide a simple explanation or are there any good explanations out on the web, or videos I should watch? Seoulite 1 Link to comment Share on other sites More sharing options...
Seoulite Posted May 3, 2021 Author Share Posted May 3, 2021 6 minutes ago, xrpthestandard said: Thanks @Seoulite for your explanation. However, no matter how many explanations I read and how many videos I watch, I still don't understand anything of this whole Flare network :-( How do you lock up XRP exactly, to get FXRP? Do you transfer your XRP to an agent for example? And how can you get passive income exactly, what do you need to go? I read about voting for example, how do you do that? Can comeone provide a simple explanation or are there any good explanations out on the web, or videos I should watch? There aren't any 'guides' yet because the exact working of the system hasn't been revealed yet. I believe they are going to have a beta before the network launch, and anyway I am confident that there will be a lot of information explaining things clearly once we know exactly how the system is going to work. Sorry I can't be more helpful than that. xrpthestandard 1 Link to comment Share on other sites More sharing options...
xrpthestandard Posted May 3, 2021 Share Posted May 3, 2021 Just now, Seoulite said: There aren't any 'guides' yet because the exact working of the system hasn't been revealed yet. I believe they are going to have a beta before the network launch, and anyway I am confident that there will be a lot of information explaining things clearly once we know exactly how the system is going to work. Sorry I can't be more helpful than that. Okay, so... in a way it's normal I don't understand how it works :-) We'll need to be patient then, the network launch is supposed to be in about 2 months from now so I guess new information will come any time. Thanks! Seoulite 1 Link to comment Share on other sites More sharing options...
thinlyspread Posted May 3, 2021 Share Posted May 3, 2021 We need to hammer home this point. Even some of the big Flare talking heads are doing a great job but missing this key point – and newbs to Flare need to be made aware that they are moving their funds to another (agent) wallet to initiate the f-asset conversion process. CountZerpula 1 Link to comment Share on other sites More sharing options...
thinlyspread Posted May 3, 2021 Share Posted May 3, 2021 On 5/1/2021 at 6:15 PM, brianwalden said: The agents have to paid for minting the F-assets. 5% is the number used in the white paper, that doesn't necessarily mean it will be 5%. White papers are about the abstract ideas, not the specifics. We'll find out the official rate when it gets closer to launch. Is 5% in the whitepaper? I cannot see a 5% figure in the FXRP whitepaper but happy to be corrected. 5% was used in a separate blog post, but this was a GUIDE and they specifically stated: "This post is intended as a simplified walkthough" Link to comment Share on other sites More sharing options...
brianwalden Posted May 3, 2021 Share Posted May 3, 2021 2 minutes ago, thinlyspread said: Is 5% in the whitepaper? I cannot see a 5% figure in the FXRP whitepaper but happy to be corrected. 5% was used in a separate blog post, but this was a GUIDE and they specifically stated: "This post is intended as a simplified walkthough" I forget where exactly, you're probably right. The point is the same, it was an example about showing the concept of how it all will work. Flare has given us the basic ideas, but we're still waiting on the details. thinlyspread 1 Link to comment Share on other sites More sharing options...
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