P2P Transactions

Transactions in Flambu with Flames and Flambucks

As Flames are deflationary tokens and their value can fluctuate due to many factors, it will be more practical and desired for the transactions on Flambu to be processed with stable tokens pegged to a fiat currency. For each rental, the renters will be asked to pay for the rental with any of the provided payment methods such as credit or debit cards, or wire transfer, or if they already have tokens in their wallet from previous earnings they can pay with those as well (including with Flame tokens as they can be converted to Flambucks at any given time).
The payment process involves the purchase of stable tokens such as Fuse Dollars ($fUSD) from any on-ramp providers such as Ramp network that will be integrated into the Flambu app. Those purchased tokens will be kept in a reserve smart contract and an equivalent amount of Flambucks will be minted for the paying user, so Flambucks will be backed 1:1 by fUSD in this case. The user that purchased Flambucks can now freely pay for rentals or buy products and services from Flambu partnered businesses in the platform for almost 0% commissions. While Flambucks are circulating in the platform, the reserve tokens will generate yield on the most performant DeFi protocols, and when a user or a business wishes to cash out their Flambucks earnings, they can do so for a 10-20% commission depending on several factors such as their residency and 3rd parties involved. The purpose of the commission is to encourage the users to use Flambucks within the platform as much as possible. Part of Flambu's revenues, including the commissions and interest generated on DeFi, will buy and burn Flame tokens from the bonding curve (see Flame Token Economics for details) which will increase the value of Flame tokens.
FBX cash-in and DeFi yield generation flows
FBX tokens will always appear to the user as their local or chosen fiat currency in the app to avoid confusion and simplify the user experience. More advanced users will be able to trade their FBX tokens with other tokens once the functionality is added to the app.
Part of Flambu's revenue will buy and burn Flame tokens from the bonding curve which will increase the value of Flame tokens.
To continue the example in the previous section, let’s say again that Alice wants to borrow Bob’s surfboard for 2 days for $100 as it is determined according to Bob’s listing ($50/day) and Alice’s balance in her wallet is 0 $FBX and 200 $FLAM. Let’s further assume that 200 $FLAM from Alice and 50 $FLAM from Bob is sufficient for this rental since the algorithm determines that this transaction is fairly safe, so in case of any issues the insurance pool will cover the losses. Therefore, for this rental, Alice needs to deposit only $100 with her credit card, so once she pays $100 which purchases 100 $fUSD, and sends to the Flambucks reserve smart contract, Flambu will mint and send 100 $FBX to Alice’s wallet automatically so she can proceed to request the rental. Once the request is sent, the escrow smart contract will lock 200 $FLAM and 100 $FBX from Alice’s address, and once Bob approves the request 50 $FLAM will be locked from Bob’s address. If everything goes smoothly and the rental ends happily, Alice and Bob will get back 200 $FLAM and 50 $FLAM, respectively. Bob will additionally get his payment of 100 $FBX in his wallet.
Now since Bob has earned 100 $FBX, he can either rent or buy a product on Flambu, he can decide to cash out, or he can convert his $FBX to $FLAM to have more stake in Flambu's future success. In case he decides to cash out, he will get $80-90 USD to his bank account. In addition to the $FLAM's that the two sides receive back after the transaction, they will additionally receive $FLAM rewards as their reputation scores will likely increase after a successful transaction.
Flambu Tokens Circulation & Business Model diagram
Last modified 30d ago
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