About Flex Protocol and launch

5 min readApr 13, 2021

In order to practice financial inclusion and let many small users stop worrying about the high GAS fees on Etherum, Flex protocol forks Float protocol on Etherum to BSC.

Flex protocol will build the future decentralized currency system on BSC. The FLXD token, which is the core of the protocol, will be built into a cryptocurrency that is both stable and flexible. Also FLEX will be distributed as project governance tokens in liquidity mining during the project launch phase.

FLXD is fundamentally different from other algorithmically stable coins, FLXD will be a non-pegged stable coin. It aims to have low short-term volatility, allowing it to actually act as a unit of account. However, in the long term, the value of FLXD should vary according to its own demand and the demand for the bottom-line cryptocurrency in its “vault”. Therefore, the value of FLXD should gradually change with the value of the cryptocurrency and thus protect the purchasing power of users in the long run.

In order to better understand the price maintenance mechanism of FLXD, we will draw on FLOAT’s price maintenance mechanism to explain it.

We stabilise the price of FLXD by controlling the supply of FLXD on the market.‌

If the price of FLXD is away from its target price, we want to change the supply by minting (expansion) or buying up and burning FLXD (contraction). We do this through a dutch auction (in an expansion) and a reverse dutch auction (in a contraction), respectively.

In these auctions, arbitragers will be given the opportunity to buy new FLXD below market price (in an expansion) or sell FLXD above market price (in a contraction) to make a profit. In doing so, arbitragers will very quickly change the supply of FLXD on the market. The reason we chose the auction model is a) it allows us to intervene in the market without having to trade FLXD ourselves and b) it also allows the system to be very efficient.

Launch and Distribution

Initially, there will be three phases of distribution. In Phase 1, FLEX will be distributed to a wide range of very active, smaller participants. In Phase 2, FLEX will be distributed to anyone in order to enable initial price discovery and there will be incentivised liquidity pools for FLEX. In Phase 3, FLEX will contain only the incentive FLEX-BNB pLP pool from Phase 2.

In general (excluding any minted as part of any contractions), there will be 147,000 FLEX to be circulated during the first year. There will likely be inflation of FLEX after year one but this will be voted on by governance.

Overall FLEX distribution schedule

Community distribution: 50% — Phase 1-28.58％, Phase 2-14.28%，Phase 3–7.14%.
Team tokens: 5% (locked for 6 months after initial mint ceremony).
VC tokens: 5% (locked for 6 months after initial mint ceremony).
Treasury: 5% (Minted at the start of Phase 2 and controlled by governance).
Post-launch liquidity incentives: 35% (5% initial FLXD mint, 30% voted on by governance but currently reserved for various liquidity incentives and partnerships).

Token distribution.

Phase 1 (starts Tuesday, April 13 at 22:00 UTC and lasts 4 weeks) — 42,000 (ends Phase 1 on May 11)

The goal of the first phase is to distribute tokens to a wide range of small, very active participants.

To achieve this goal, we introduced a whitelist where only addresses that have been active governing participants in other protocols are eligible.

The whitelist consists of representatives participating in the off-chain governance of any protocol on Snapshot.page and on PanCakeSwap, representatives on Compound, voters on Yearn, voters on UMA, representatives on YAM, voters and custodians on Curve, and representatives and voters on Uniswap.

There will be 3 stablecoin pools to distribute FLEX: BUSD, USDT and USDC.

There will be 1,500.00 FLEX distributed per day, 500 FLE per pool, and 10,500 FLEX will be distributed per week.

Each pool will have a limit of 10,000 token deposits.

As mentioned before, these deposits will not be used for anything. Their purpose is to distribute FLEX, build an active user base and provide signals.

Phase 2 (starts Tuesday, May 11 at 22:00 UTC and lasts 2 weeks) — 21,000

The second phase is designed to provide the community with a wide distribution of the top DeFI protocol and to enable initial price discovery of FLEX tokens.

All participation restrictions will be removed (both per address and per pool).
In addition, new non-stable coin pools will be added. The full announcement will be made 1 week before the start of Phase 2.

During Phase 2, we will also incentivize a liquidity pool for FLEX-BNB for better price discovery.

1500 FLEX will be distributed daily and 10,500 FLEX will be distributed weekly. 800 FLEX will be distributed daily to the FLEX-BNB liquidity pool. The rest of the BNB, BUSD, USDT, USDC pools will be distributed daily: 175 FLEX.

Again, these deposits will not be used for any purpose other than signaling and building an active user base.

Phase 3 (starts at 22:00 UTC on Tuesday, May 25 and lasts for 6 weeks) — 10,500

Phase 3 will contain only the incentive FLEX-BNB pLP pool from Phase 2. 10,500 FLEX will be allocated over the 6 weeks of Phase 3 through the following allocation schedule.

- Week 1 (starting Tuesday, May 25) — 3010 FLEX — 430
- Week 2 (starting Tuesday, June 1) — 2520 FLEX — 360
- Week 3 (starting Tuesday, June 8) — 1995 FLEX — 285
- Week 4 (starting Tuesday, June 15) — 1505 FLEX — 215
- Week 5 (starting Tuesday, June 22) — 980 FLEX — 140
- Week 6 (starting Tuesday, June 29) — 490 FLEX — 70

FLXD minting Ceremony

Once the 12 weeks distribution period has passed, the initial FLXD minting ceremony will happen. During this period FLXD will be available to buy in exchange for Ethereum and the purchase will be incentivised with 5% of the FLEX supply distributed pro rata. More details on how much FLXD will be available for purchase and the exact mechanism for the initial minting ceremony will be released 1 week before the 8 weeks initial distribution period has passed.

Team and VC Tokens

As an incentive to keep building Flex Protocol and its ecosystem, the team will receive 5% of the FLEX tokens. These are locked for 6 months after the initial mint ceremony of FLXD.

Treasury

In order to pay for costs associated with FLXD, for future development and any initiatives that may arise, 5% of the FLEX tokens will be reserved for the Treasury. These will be minted at the start of Phase 2 and allocated by votes of the governance.

Post-launch liquidity incentive

In order to maintain liquidity for FLEX, each month the Flex Protocol governance will decide liquidity incentives for FLEX pools.

Contracts

FLEX: 0xD383222B0C980dD3ed42E2f72D9CDE16FC28FB88

BUSD: 0xb57Ae30a038acA531dC451d544EbBE3f8733fc19

USDC: 0x944c82294F0fF674Da67F9B4145C74cC866bcC46

USDT: 0x230f3cae3241dA410B3E4CFf724ab6Af7551FAA1

Timelock: 0xad773b04A0418E692B1f60B0C54De014A1bd8291

Multisign: 0xaB3efDad685C08Edc5BF5b21955eD57BeBA60f39

Follow us

Website — https://www.flexprotocol.org/

Twitter — https://twitter.com/FlexProtocolFi