DeFi Goes Beyond Ethereum As NEO App Gains $300M After Launch

Defi goes beyond Ethereum as moments after a NEO app was launched, it gained $300 million as we are reading in today’s NEO news.

The decentralized finance space was a trend stuck to Ethereum only. According to Defi pulse, the top twenty Defi applications by total value locked are based on ETH and it’s for a good reason. Ethereum was the only blockchain that had an active user base and developers that are working on incredible DeFi apps. However, this is changing with Flamingo Finance- the full-stack DeFi protocol built on NEO. This protocol was created to siphon capital from the ETH ecosystem and managed to gain $300 million after the launch.

In the meanwhile, #Flamincome now officially supports UNI-V2 ETH/WBTC LP Token! pic.twitter.com/4G9wuG20nE

— Flamingo Finance (@FlamingoFinance) September 25, 2020

While Ethereum’s Defi space slowed down over the past few days, this is not the case for NEO as Defi goes beyond Ethereum. Flamingo Finance reported that since the launch of Wrapper and Flamincome it secured more than $300 million worth of deposits from all across the crypto ecosystem. Wrapper is a cross-chain gateway for ETH, BTC, and NEO but for other blockchains as well which means users can deposit accepted coins in an exchange for tokenized representations of deposits made on NEO. Flamincome is a yield booster that can allow users to earn yields on both ETH and NEO at the same time.

Like with other Defi protocols, Flamingo incentivized these inflows by offering yields that are paid out in the FLM as the protocol’s native token. The founder of NEO, Da Hongfei endorsed the protocol by tweeting out his congratulations about the new milestone hit a few days ago. Along with the new options to migrate coins from chain to chain and to earn income on two chains, Flamingo Finance wants to launch a decentralized margin exchange and its own iteration of MakerDAO.

The launch was successful as the users reported that for a short period of 40-60 minutes, NEO’s nodes stopped producing blocks and some even went offline. It has since been clarified that no nodes were down but some block explorers were because of the influx in traffic. Flamingo Finance’s rise came as the third generation blockchain similar to the Binance Chain and Polkadot that attempted to encroach on the ETH market share. Most of the networks are running with clever systems that entice the users to migrate to ETH-based tokens to the new networks hoping to create a strong network effect.