Wednesday, November 25, 2020
Home Cryptoslate News Founder of China’s NEO says DeFi is just getting started, launches “Flamingo”

Founder of China’s NEO says DeFi is just getting started, launches “Flamingo”

The decentralized finance (DeFi) crypto market has dominated both charts and headlines in the past few months, with some heralding the nascent, yet billion-dollar, crypto sub-sector as the next frontier for attracting capital and retail participants.

But while much of the DeFi and “yield farming” activity has been limited to Ethereum-based projects and ERC20 tokens, the founder of NEO, Da Hongfei, said in a recent podcast that other chains are soon coming with their own DeFi iterations to capture more of the market — minus the slow transactions and high gas fees.

For the uninitiated, yield farming is a sub-set of DeFi that sees users lock up their capital on crypto protocols to be lent out to other users at interest; and receiving part of that interest payout based on the liquidity they lend out. Other DeFi applications include peer-to-peer noncustodial trading.

NEO comes to the DeFi playground

NEO, one of the biggest crypto projects to come out of China and long touted as an Ethereum competitor, stepped into the DeFi game this month with the announcement of Flamingo this month. The project has already locked up $1.6 billion at press time.

With the launch, NEO joined the likes of crypto exchange Binance, whose Binance Smart Chain blockchain also saw projects like “Bakery Swap” and “Pancake Swap” entice yield “farmers” with high annualized yields and low fees.

And the China market could just be waking up to that, noted NEO’s Hongfei. “Chinese citizens have done this more or less, probably dealing with banks, dealing with Alipay and WeChat, at least doing this kind of financial behavior without going to the bank,” said Hongfei, referring to the demographic’s compatibility with financial and cashless applications in the country.

He added (translated from Chinese):

“Lending and borrowing, decentralized exchanges, insurance, and all kinds of derivatives are on the rise in DeFi. The initial stage DeFi infrastructure has a solid good start, and now it is time to see more and more applications to be built and innovated on DeFi.”

Flamingo, NEO’s new DeFi project

Hongfei also noted that DeFi has ushered in newer possibilities of financial tasks and applications, all of which can allow users to access and tap into newer forms of capital. 

He may not be very far from achieving that goal. Flamingo, an interoperable, full-stack DeFi protocol built on the NEO blockchain, was earlier listed on Binance as part of its Launchpool program and began trading on itself, OKEx, and FTX earlier today.  

Flamingo allows users to participate as traders, stakers, and liquidity providers, paying out yields to those who lock up their NEO on its protocol.

Meanwhile, Hongfei’s words came at a time when the Chinese government “usually” spoke about cryptocurrencies on a state-run news broadcast last week.

As CryptoSlate reported at the time, China said cryptocurrencies were the “best performing asset class of 2020” and even pointed out, specifically, the rise of DeFi as one of the leading factors.

Posted In: , , DeFi

Like what you see? Subscribe for daily updates.

Popular Articles

Jim Cramer After Pump Toward $20k: It Isn’t Too Late to Buy Bitcoin

Bitcoin is exploding higher after days of consolidation under $19,000. The leading cryptocurrency as of this article’s writing is in the midst of shooting...

Celsius says it tipped in 25,000 Ether to help launch Ethereum 2.0

Additional transactions have been deposited into the Ethereum...

Top 10 Magazines To Follow For The Latest Crypto Trends

Check out our new platform 👉 https://thecapital.io/Sujit Kumar PathakNov 24 · 4 min readCryptocurrency is having a significant impact on today’s global market. It...

Chainlink Likely To See Higher Momentum As Bulls May Reach 18$

Check out our new platform 👉 https://thecapital.io/The Crypto BasicNov 23 · 2 min readChainlink has seen a strong push higher over the past few...

Why Ripple Price Explodes To Over 100% In Seven Days

Check out our new platform 👉 https://thecapital.io/The Crypto BasicNov 24 · 2 min readRipple has been able to gain a lot with its native...

Ethereum Price Prediction: ETH/USD Retains the Bullish Momentum; Price Touches $623 High

ETH Price Prediction – November 24 Ethereum (ETH) is witnessing some intense selling pressure following its latest push higher, with bulls trying to defend $600. ETH/USD...