Poll: What % of your XRP are you intending to convert to FXRP?

[Seoulite]

Given what we know so far about the system (which is not that much), what % of your XRP are you intending to convert to FXRP? (will do another poll after we find out more, will be interesting to see the difference)

[B088IN]

If we decide to convert am I right in thinking you don’t loose your XRP it’s just tied to fxrp. Is there a minimum maximum time frame you have to leave it as fxrp?

Edited May 30, 2021 by B088IN

[BillyOckham]

35 minutes ago, B088IN said:

If we decide to convert am I right in thinking you don’t loose your XRP it’s just tied to fxrp. Is there a minimum maximum time frame you have to leave it as fxrp?

No that’s not correct.   You no longer have the XRP, you have swapped it for f-XRP.  The agent now has your XRP and can do what they like with it.

 

In theory you can always undo the swap and the agent has to return the same amount XRP (less fees).  If they don’t then the smart contract will send you an equivalent amount of Flare.

You can then manually buy the XRP with the Flare.

 

Edited May 31, 2021 by BillyOckham
Clarity

[Guest]

6 minutes ago, BillyOckham said:

In theory you can always undo the swap and the agent has to return the same amount XRP (less fees).  If they don’t then the smart contract will send you an equivalent amount of Flare.

You can then manually buy the XRP with the Flare.

 

And this is why it’s brilliant  Flare effectively gets buoyed by XRP and other assets that it supports swapping for, but mostly XRP. And vice-versa, once a good market is established.

[CountZerpula]

@B088IN the way that the system is designed, what it amounts to is that you trade your XRP for fXRP, so yes you do relinquish custody of the XRP to the system.

If you wanted to get the XRP back, you would simply redeem the fXRP - there is no set timeframe within which you'd need to do this. Remember that there is a fee on either side, either a creation fee, or a redemption fee depending on whether you're moving in or out of the system.

You wouldn't ever have to go back into XRP if you didn't want to. You might take that fXRP and trade it for something else on FlareX, then move that asset to another exchange and move into fiat. Or you might move some assets from one exchange to FlareX, make a series of trades, end up with fXRP and decide you want XRP, so you redeem the fXRP. 

@BillyOckham we were basically typing the same thing simultaneously, and I agree with what you said for the most part, but I think it's more apt to think of it as that you're interacting with 'the system' rather than with individual agents. It's really not as though there are individual agents assigned to a particular 'case', they are more facilitators/cogs in the wheel, and I'm not sure it's accurate to say that they can do whatever they like with the F-assets - there's a degree of flexibility, but I just think putting it that way that implies that they have more freedom than they to do, before the system steps in to intervene. 

https://blog.flare.xyz/creating-and-redeeming-fxrp/

https://flare.xyz/app/uploads/2020/08/FXRP_Version_1.0.pdf

Quote

The basis for the safety of the FXRP collateral system is centered on two required elements:

1) The agent always has more to lose from defaulting on a required action than by performing the required action.

2) If an agent does default, the system creates a strong profit incentive for others to rectify the situation.

 

[BillyOckham]

@CountZerpula yeah I think you are right...   it’s better to say system than agent.

I was trying to indicate the loss of possession of the XRP...  you don’t own then anymore,  but you can always redeem the same amount back.

The main thing I wanted to make clear is that you actually have swapped them.  A lot of people seem to think they are still in their possession.  The facility to ‘get them back’ is what gives some people that impression perhaps.

Thanks Count for all the good work you do making things easy to understand for the rest of us who don’t have your capacities and willingness to deep-dive.  

[CountZerpula]

Appreciate the kind words @BillyOckham but I'm right there with everybody else, just trying to get my head around everything. You hit the main point anyhow, I was just offering what might be some clarity in how we conceive that the system functions. Here are some examples that Hugo gives along these lines, you might like this 

 

[Seoulite]

1 hour ago, BillyOckham said:

The main thing I wanted to make clear is that you actually have swapped them.  A lot of people seem to think they are still in their possession.  The facility to ‘get them back’ is what gives some people that impression perhaps.

I agree I think this will be a key area of discussion in the coming month. It might be most accurate to say in theory you should never lose any value, or what you get back is the value you put in. 

[Seoulite]

Interesting but not surprising to see even a self-selected group like us is relatively wary of this.

My answer was 50%. If F-assets were going live tomorrow that is what I would be planning. The reason is that I do trust Flare and believe they are trying to make a legit system that rewards participation, and I want the rewards, but I am not ready to go all in. I don’t think people will lose their stuff, but it is possible. I guess when we know more about the system my plan will go up to around 70 or 80%. Maybe even 100%, who knows.

Anyone else want to explain their choice?

[Chookstar]

8 minutes ago, Seoulite said:

Interesting but not surprising to see even a self-selected group like us is relatively wary of this.

My answer was 50%. If F-assets were going live tomorrow that is what I would be planning. The reason is that I do trust Flare and believe they are trying to make a legit system that rewards participation, and I want the rewards, but I am not ready to go all in. I don’t think people will lose their stuff, but it is possible. I guess when we know more about the system my plan will go up to around 70 or 80%. Maybe even 100%, who knows.

Anyone else want to explain their choice?

I am a total novice at all this technical stuff, so I answered 0%. Until I understand what I'm doing, I'll do nothing.

Also I will be happy with the allocation of FLR I get, so I never even contemplated swapping my XRP for it. And I would only do so if it were really easy to do on my exchange. 

[henne111]

I intend to convert 50% to FXRP. I read a lot here and can understand a lot. And I'm also very excited about the start of the network. The way I see it so far, flare is going to be a big deal. I already know that I will no longer have XRP after the exchange. I have FXRP for that. And then, if I can earn passive income with FXRP, that's fine with me. And I would also like to say thank you to all of you who write here diligently. It is a great help to understand a lot.

[Julian_Williams]

Since we are only getting 15% at first I can only convert 7.5 at first?  Unless I buy more FLR.   If FLR was really cheap, like .1 I would buy more.  It is was .5  I probably would wait and see what happens. 

I think in order to qualify for the YFLR (or is it called YFIN, I am so confused) you have to first register FXRP?

 

Edited May 31, 2021 by Julian_Williams

[CountZerpula]

@Julian_Williams we'll be getting %15 as the first distribution, yes - but you likely won't be able to mint any F-assets for about a month at least; that seems to be the convention right now, but don't quote me. Makes sense that they'd want to see the FLR price stabilize a bit before cranking up the mint machine. But you can certainly buy more FLR during this period.

Then, a month after Flare goes live, Flare Finance will be doing their own snapshot. This is based on one criteria: however many FLR you hold at the moment of the snapshot. You'll receive DFLR commensurate to the amount of FLR you were holding, and will then need to redeem the DFLR for YFLR on the Flare Finance platform. Originally you'll have had 7 days within which to make this claim, but seems that this has been extended to 14 days per @cryptofrenchie in his latest interview.

FXRP has nothing to do with this, although it will certainly have it's place on FlareX, Flare Farm etc.

[Seoulite]

39 minutes ago, Julian_Williams said:

Since we are only getting 15% at first I can only convert 7.5 at first?  Unless I buy more FLR.   If FLR was really cheap, like .1 I would buy more.  It is was .5  I probably would wait and see what happens. 

I think in order to qualify for the YFLR (or is it called YFIN, I am so confused) you have to first register FXRP?

 

You don't require any FLR to mint F-assets. So it doesn't matter how much FLR you have, it is possible to convert 100% of your XRP to FXRP should you wish.

And yes as I understand it the most reliable and quickest way to get YFIN will be putting into the liquidity pools for  f-assets on flare finance. I will be looking much more into what that entails when we know more details, and as the Count says we will have at least another month to get ready for the Flare Finance launch. 

[Julian_Williams]

1 hour ago, Seoulite said:

You don't require any FLR to mint F-assets. So it doesn't matter how much FLR you have, it is possible to convert 100% of your XRP to FXRP should you wish.

And yes as I understand it the most reliable and quickest way to get YFIN will be putting into the liquidity pools for  f-assets on flare finance. I will be looking much more into what that entails when we know more details, and as the Count says we will have at least another month to get ready for the Flare Finance launch. 

As I understand it YFIN could become the dex token on the FLR network.  If that were to become the case it could become super valuable like UNI and BNB tokens (just my uneducated reading of the situation)

Edited May 31, 2021 by Julian_Williams