NEO investors should follow the announcement to be made by Flamingo Finance today. The Flamingo Finance platform, which could not handle the “high demand” yesterday, is expected to open today. NEO price may fluctuate during this opening.
Flamingo Finance, a DeFi project supported by NEO; It aims to build a bridge between Ethereum and NEO. Having a YEarn Finance-like model, Flamingo Finance ecosystem includes various products such as Flamincome and Flamingo Wrapper.
Benefiting from both DeFi craze and NEO support, Flamingo Finance managed to reach a large user base in a short time. After the Flamingo team activated Flamincome and Flamingo Wrapper, there was a capital inflow of $ 100 million into the platform. But this rapid growth also brought a problem with it.
Eyes Were Turned on September 25
Flamingo Finance collected $ 100 million within the first 24 hours after it went live on September 23, but some users had difficulty in making transactions during this period. The reason for this was that the platform was “unable to handle heavy traffic”.
Flamingo Finance, which attracted great attention from the moment it was opened, attracted even more people with the Mint Rush program it planned to organize on September 25th. Flamingo Finance, like many other DeFi platforms lately, allows people to perform yield farming. Users who buy FLM tokens can convert them to other NEO-based tokens and earn passively. With the Mint Rush event, which is expected to be held on September 25, it was planned to increase the awards distributed to liquidity providers. This is the reason for the increased interest in the platform.
Had to be postponed
Flamingo Finance started the Mint Rush program yesterday, but it soon became clear that there was a big problem: The platform is not capable of handling this intense interest. Unable to handle this traffic, Flamingo Finance caused the NEO wallet called Neolive to crash. NEO founder Da Hongfei shared the following announcement on his Twitter account:
“Neoline server crashed due to heavy traffic. Everyone’s money is securely stored in smart contracts. Layer 1 works fine. Please be patient and know that we are working together to solve these problems. ”
After Hongfei shared this post, the Flamingo Finance team also released an announcement and announced that the opening date of Mint Rush was delayed. Trying to fix problems with the wallet, the developers postponed the opening date to September 26.
Due to the current issue, the team has decided to delay the Mint Rush. Mint Rush will not start before 26/09/2020 UTC 13:00.
Please be assured If you have assets pending in the cross-chain process and couldn't see the status due to wallet errors, your assets are safe.
— Flamingo Finance (@FlamingoFinance) September 25, 2020
May Cause Volatility in NEO Price
The performance of the Flamingo Finance platform today may lead to positive or negative fluctuations in the NEO price. The flamingo network’s failure to bear the burden of Mint Rush yesterday resulted in a 4% drop in NEO price.
The NEO price, which rose above $ 23 yesterday, dropped to $ 21 due to problems with the Flamingo network. NEO Mint Rush is trading at $ 22 just about to be restarted.