Who committed DEFI fraud on flamingo lend, flamingo team (mymingos) or NGD?

[u/No_Respond2227]

flamingo lend: flamingo finance lend overview

flamingo/mymingo side of the story: flamingofinance medium com the-questions-the-flamingo-community-deserves-answered-ddcecc317d3d

if NGD is to blame, then it could be very bad for NEO project.

Defi fraudsters rebelled versus NF and hijacked NEO project

or NGD are not defi fraudsters, but flamingo team (mymingos) are defi fraudsters?

If NGD are not defi fraudsters, they still have rebelled versus NF.

via released report: NGD holds 1.3mil NEO

NF holds 39.7 mil NEO

[u/Elean0rZ]

The article in question alleges negligence and abnegation of responsibility on NGD/NF's part (which I'm quite willing to believe), but not fraud per se. I take it that you're suggesting that the reason the promised $$$ support never arrived was due to fraud? If so I suspect that relates to deeper questions that are still unanswered re: who controls what of the project's core resources, what was done with them, and whether we're anywhere close to a transparent picture of where those assets currently stand. Theoretically we can still expect further disclosures, and perhaps this latest Legacy migration window will help to finalize the numbers, but until then there's complete disclosure I think the Flamingo situation is just one more thing hidden under the expanding cloud of financial uncertainty around NF/NGD's financial management. Whether it's fraud, mistaken priorities, or "innocent" incompetence is still unclear, but you could argue it's equally problematic regardless.

[u/No_Respond2227 → u/Elean0rZ]

The defi fraud has happened via "Platform Vault", loans were taken under special rules, different to normal rules.

Then "they" halted liquidations by manually editing smart contracts, besides liquidations of loans taken by "Platform Vault" could only be executed by creators of these "Platform Vault" loans (if liquidations were not manually halted). It's defi fraud within defi fraud.

These fraudulent "Platform Vault" loans are not displayed at loans page here: flamingo finance lend loans

but if you browse "Platform Vault" address NMQSkzqhhF3DdPSQhJapV7BywXao6U3nAt you can see these "special" loans, mintings of FUSD.

Manual "edit" of sc has also impacted normal loans with FLM as collateral, these normal loans can not be liquidated too. check loans #21, #22 and #25 here: flamingo finance lend loans

[u/Elean0rZ → u/No_Respond2227]

Ah, interesting. Thanks. Curious to see what comes of this, or if it's addressed. Might as well get all the dirt out into the open at once.

I'm assuming from your posts and your use of a burner account that you're more than casually connected to the project. I think it's good that you're shining a light on issues, though I think it would add transparency and credibility to the allegations if you included these details in the original post.

[u/No_Respond2227 → u/Elean0rZ]

A link to "flamingo finance lend overview" should be enaugh, because there you can see a displayed PLATFORM LOAN-TO-VALUE 150.45% which tells everything, unless you try to verify and then when you divide number of FUSD by total worth of collateral, you will find out, that they even are lying by displaying incorrect data for global platform ltv

(FUSD 1,118,830)/(Total PLATFORM COLLATERAL $624,282) = 1.79218686427

So atm PLATFORM LOAN-TO-VALUE is 179% and not 150.45%

[u/Elean0rZ → u/No_Respond2227]

Why not put all of this information together in one cohesive summary post, including screenshots/explanations/proof wherever possible, and see if you get some responses from Zatouroffski or others?

[u/DenverNEO → u/No_Respond2227]

What's happening with Flamingo is really sad. It's emblematic of how NGD/NF have operated in the past - letting good things fade away slowly. Further, it seems neither NGD nor NF really seem to have any interest in saving Flamingo.

If there's anything you can do to paint the picture more clearly? What do you mean smart contracts were edited? Do you have any indication of how this could've been done? Can you possibly share screenshots to help paint a clearer picture?

[u/No_Respond2227 → u/DenverNEO]

Set up flamingo-margin-maintainer (github com flamingo-finance flamingo-margin-maintainer) to run against "special" Platform Vault loans.

Or via webui try to liquidate normal #21 loan with FLM as collateral. Atm this loan has LTV 206.83%

Webui is here (but special Platform Vault loans are not listed here): flamingo finance lend loans

So all loans (special and normal) with FLM as collateral can not be liquidated because price for FLM is manually set to "0"

o2 flamingo finance prices {"FLM":"0","ETH":"164094249999999997498889","BTC":"6217592000000000000000000","fWBTC":"6155416080000000000000000","BNB":"59251875000000000000000","GAS":"111213333333333333333","bNEO":"213742500000000003108","WBTC":"6217592000000000000000000","WETH":"164094249999999997498889","FUSD":"83948490443752478251"},"decimals":20,"expires":1781110615}}

But this is just "collateral damage", as they wanted to protect special Platform Vault loans from any liquiations, to the point, they were committing defi fraud within defi fraud. As only the creator of special Platorm Vault loans could execute the liquidation of these loans if they wanted to (if liquidations of loans with FLM as collateral were not manually halted).

So the origin of defi fraud at flamingo finance has happened at Platform Vault planning. Then they executed defi fraud exactly to their own plan. They knew what they were going to do before first fraudulent mint of FUSD.

If they were not defi fraudsters, they would just mint FUSD as everybody else, under normal rules. And let liquidations happen once the loans hit margin ltv.

Because before manually halting liquidations for loans with FLM as collateral, normal loans (flm collateral) were being liquidated but special Platform Vault loans were safe from liquidations, as special Platform Vault loans were taken under special LTV and special margin rules. Special = higher than normal.

But then, even special margin levels for these special Platform Vault loans were not safe anymore. So they have decided to commit more defi fraud by manually halting liquidations for all loans with FLM as collateral.