Flamingo, a NGD (Neo Global Development) incubated, full-stack DeFi protocol, is set to undergo its first major upgrade with newly designed mechanisms for cross-chain interoperability, yield boosting, as well as on-chain derivatives.

Flamingo (and Flamincome) first major upgrades are set to go live along with FIP#2. The upgrades contain 3 major new features: yToken and xToken from Flamincome side, and Perp from Flamingo side.

Initially designed to reduce opportunity costs for cross-chain users, Flamincome enabled Ethereum users to yield farm via Flamingo while enjoying a return rate equivalent to yearn finance. With this unique “dual mining” model, Flamincome had the chance to experiment on translating cross-chain gateway into an asset management product.

The upgraded version of Flamincome will split yield farming and cross-chain functionalities by introducing two key asset types—yToken and xToken. Miners and cross-chain users will enter through y and x channels respectively; xToken holders enjoy an instant and bi-directional atomic cross-chain solution but is not entitled for yield distribution on Flamincome, and yToken holders are entitled for all yields generated from the strategy pool, making yToken the only interest and liquidation-risk-free leverage asset. xToken can become the standardized ETH asset cross chain channel for any target chain due to its strong value-anchoring nature.

yToken:leveraged yielding asset

The upgraded Flamincome platform can be treated as the leveraged Yearn. Underlying assets for xToken generation will be pooled together with underlying assets of yToken and put into the strategy contract. Leveraged by xToken, yToken holders are guaranteed with higher APYs than any other existing