Phase 1 of Flare Finance’s ExFi begins

[Seoulite]

Read about it here. Participate at own risk. It says in the blog:

“Please be aware, Flare Finance “ExFi” is a semi-audit experimental finance platform dedicated to giving both the community and developers a place to test, learn, and gain valuable experience with decentralized finance in a sandbox style “anything goes” manner. There are risks associated with using ExFi and some of these risks include:

Malicious actions such as hacks or denial of service.

Bugs and undiscovered edge cases that could result in some UX/UI issues.

Liquidations due to low liquidity and high market volatility.

We will do everything in our power to mitigate the above potential risks, but of course, there is nothing that is guaranteed. Please be aware to only risk what you are willing to lose and to do any and all of your own research when it comes to learning ExFi, DeFi, and Flare Finance.”

https://flarefinance.medium.com/flare-finance-exfi-phase-1-begins-23ec0cbe6f3e

 

[Guest]

10 minutes ago, Seoulite said:

Read about it here. Participate at own risk. It says in the blog:

“Please be aware, Flare Finance “ExFi” is a semi-audit experimental finance platform dedicated to giving both the community and developers a place to test, learn, and gain valuable experience with decentralized finance in a sandbox style “anything goes” manner. There are risks associated with using ExFi and some of these risks include:

Malicious actions such as hacks or denial of service.

Bugs and undiscovered edge cases that could result in some UX/UI issues.

Liquidations due to low liquidity and high market volatility.

We will do everything in our power to mitigate the above potential risks, but of course, there is nothing that is guaranteed. Please be aware to only risk what you are willing to lose and to do any and all of your own research when it comes to learning ExFi, DeFi, and Flare Finance.”

https://flarefinance.medium.com/flare-finance-exfi-phase-1-begins-23ec0cbe6f3e

 

This is where things get interesting. Once trading begins (two days from now?) we'll start to see arbitrage between Flare Finance and Bitrue.

There's going to be tools built to automatically play that arbitrage and I suspect that whoever takes the plunge now to mint $CAND and participate in liquidity pools might be looking at a good risk/reward.

[Seoulite]

6 minutes ago, Ripley said:

I suspect that whoever takes the plunge now to mint $CAND and participate in liquidity pools might be looking at a good risk/reward.

I don't know enough about it to want to take the risk (also financially it's not a great time to take a lot of risks) so investing in SGB is about as risky as I want to go right now. But gods speed to those who want to try it. I reckon it could be lucrative.

[JASCoder]

I like how "Cand" can be pronounced "Sand" as in Sandbox. 
lol 

[Guest]

31 minutes ago, JASCoder said:

I like how "Cand" can be pronounced "Sand" as in Sandbox. 
lol 

I assumed it was intended to be pronounced candy

[Guest]

By the way, several folks have already earned more than the DFLR they would have gotten from the FLR snapshot airdrop on the MainNet. I only found out because I was on the Samurai Chat channel, in turn because I was part of the private Beta

[Seoulite]

14 minutes ago, Ripley said:

By the way, several folks have already earned more than the DFLR they would have gotten from the FLR snapshot airdrop on the MainNet. I only found out because I was on the Samurai Chat channel, in turn because I was part of the private Beta

I don't doubt it's gonna pay well, I dunno I just don't have the bandwidth to jump into something experimental and complex right now. Well done to them though.

[brianwalden]

I dunno. I don't like how everything launches with these gimmicks. You can't just buy what you want, you've gotta jump through all the hoops so they can use your liquidity to bootstrap their product. I've been burned by this before, my general strategy is to just stay out of these launches even if it means missing out on opportunities. That doesn't mean you should stay out, this is not financial advice.

[Guest]

1 hour ago, brianwalden said:

I dunno. I don't like how everything launches with these gimmicks. You can't just buy what you want, you've gotta jump through all the hoops so they can use your liquidity to bootstrap their product. I've been burned by this before, my general strategy is to just stay out of these launches even if it means missing out on opportunities. That doesn't mean you should stay out, this is not financial advice.

Update: Some folks are having trouble getting their SGB out even after following these steps. My recommendation now is to not get in unless you’re really sure about what you’re doing. I’m leaving my previous notes  below because there’s some useful information there. 
 

Alright.. Went in early enough, skimmed some dFLR which I left in the dFLR pool to get some ongoing yield. Got all of my SGB out and back into the FTSO ahead of tomorrow's epoch.

That was about the risk I was willing to take. Whatever's coming out of that dFLR is essentially free money. There were a couple of scary moments, so I'm leaving them here for others who plan on using the system -

• Use a desktop browser. Not a mobile device. Some operations don't work on mobile yet. It's likely an issue with MetaMask and/or Bifrost.
• You need to take a debt in the "Nest" tab - a minimum of $1800. Obviously they call it "minting", but you are taking on a loan. Keep a healthy collateral. 
• When you try to adjust your debt or collateral, the UI is going to show you crazy amounts of gas. Ignore that and initiate the transaction and MetaMask (or BiFrost) will show you the real gas, which is pretty small.
• Once you take a loan (i.e. mint $CAND) you can deposit that in the Stability Pool to earn DFLR. 
• You can redeem all your earned DFLR by withdrawing a "small" amount of staked $CAND. E.g. $1 CAND. You don't need to withdraw all of it.
• You can then deposit DFLR in the DFLR Pool to earn more $CAND and $SGB.
• Keep an eye on collateral ratio, and make sure that you have a healthy amount. If you get nervous, that's a signal to get out. 
• Remove your loan from the Stability Pool and you should be able to "Repay" your loan. Remember that it may take some time for the funds to be returned to you from the Stability Pool contract, so don't panic if the Repay button on the Nest tab says you don't have sufficient funds.
• Once you successfully repay your loan, it may take a few mins for the funds to show up on your wallet. Don't panic. 
• You can withdraw DFLR to redeem your CAND and SGB rewards. Just as before, funds may take a bit of time to show up on the wallet. I haven't tried withdrawing a small amount of DFLR. I took the whole amount out of the DFLR pool and put the whole amount back in.
• Use the explorer at https://songbird-explorer.flare.network/ to check your token balances. That's the source of truth. Not what MetaMask/BiFrost shows you.

Finally, if you take your funds out, remember to delegate your votes on the FTSO because the epoch is sometime within the next three days.

 

PS. Definitely listen to warnings from @Seoulite and @brianwalden. If you haven't played with LPs before, definitely don't do it. I personally never see myself being in an LP because -

• The tokens I have (or will have through Flare), I have invested in. I have a certain attachment to them given the due diligence. I don't want to be subjected to impermanent loss. 
• LPs are super painful to deal with for taxes. 
• LPs are legally a bit weird, especially in the U.S. and without clarity around broker/dealer stuff, I'm not getting in even if I were nihilistic towards my tokens.

Your mileage may vary.

Edited September 30, 2021 by Ripley

[djdhrubs]

Sounds like a nice degen farm. Shame I won’t have an opportunity to look into it until late night.

[jbjnr]

9 hours ago, Ripley said:

• Once you take a loan (i.e. mint $CAND) you can deposit that in the Stability Pool to earn DFLR. 

I minted some CAND but could not find any way of contributing to the stability pool, so instead I decided to contribute to the liquidity pool for CAND/SGB - this is my first foray into DeFi. (It's free money after all, might as well have a play).

But ... on another thread ages ago ...

On 5/18/2021 at 8:39 PM, brianwalden said:

FlareX - This is Flare's AMM exchange like UniSwap, SushiSwap, etc. You can put pairs of coins into liquidity pools in exchange for tokens representing your share of the pool. When you redeem the tokens, the coins you get back will include your share of whatever profits the pool made

I can't find any info on the rewards for the liquidity pool (I can see that I have some FlareX LP tokens). Is there any way of knowing as time passes, how much/many rewards one has earned from the LP? What is the normal way of collecting fees/rewards. Does one simply liquidate one's pool collateral every N days/weeks/months and discover a surprise amount?

TIA

 

[brianwalden]

32 minutes ago, jbjnr said:

I minted some CAND but could not find any way of contributing to the stability pool, so instead I decided to contribute to the liquidity pool for CAND/SGB - this is my first foray into DeFi. (It's free money after all, might as well have a play).

But ... on another thread ages ago ...

I can't find any info on the rewards for the liquidity pool (I can see that I have some FlareX LP tokens). Is there any way of knowing as time passes, how much/many rewards one has earned from the LP? What is the normal way of collecting fees/rewards. Does one simply liquidate one's pool collateral every N days/weeks/months and discover a surprise amount?

TIA

 

The pools might be so new that they don't have published rates yet. Usually you can track your positions on the site. I farm on the Terra network, whose swap app is still really bare boned and have to use an external dashboard to track my positions, but I don't think that's the norm. Also, I think you'll be earning a governance token (SFIN?) which you'll probably have to claim every so often.

If nothing else gives you any indication, go to withdraw and put in your full balance of LP tokens and it will show you how much of each coin you'll get back. If you want to take profits, you should be able to withdraw a fraction of your tokens, not all or nothing.

Sorry, I'm waiting until they've got their pools a bit more ready before I dive in, so I can't help you with details. But like you said, Songbird is the place to learn and figure all this stuff out.

[jbjnr]

Well. I took out a $CAND loan for ~$3500 and overcollateralized it by 300+% and added it to the liquidity pool. Left it there for just under 24 hours, then wasn't able to redeem it without dozens of failed attempts to repay my loan and convert SGB to $CAND and vice versa etc etc and finally returned everything back to plain old SGB. Overall I probably lost about 1K SGB which is sad (no LP rewards as far as I could see), but it's ok because I learned a bit about this defi stuff and it's all free anyway. I also lost 1 day's worth of delegation of WSGB rewards on ~20k SGB.

But my impression of the UI and overall quality of the FlareX stuff is so underwhelming that I just sent 50% of my SGB to bitrue and traded it for xrp. If the future of finance is this tosh, then I'm ok with using the bank. I'll leave the other 50% earning delegation rewards and see if SGB tanks or moons. (NB. I may have messed up my Top5 delegation stake when transferring stuff around, so that experiment might not be very useful, must reset it).

[Seoulite]

10 minutes ago, jbjnr said:

But my impression of the UI and overall quality of the FlareX stuff is so underwhelming that I just sent 50% of my SGB to bitrue and traded it for xrp. If the future of finance is this tosh, then I'm ok with using the bank.

Lol, in general I agree but remember how crap the first Bitcoin wallets were. Things will get better.

That said I’m not expecting to abandon my back any time soon, if ever. This is still just magic internet money to me.

[brianwalden]

3 hours ago, Seoulite said:

Lol, in general I agree but remember how crap the first Bitcoin wallets were. Things will get better.

That said I’m not expecting to abandon my back any time soon, if ever. This is still just magic internet money to me.

This is where I proclaim my undying love for the old RippleTrade wallet.