Loading...

Flare Labs eyes DeFi expansion with innovative non-smart contract token solution

TL;DR

  • Flare Labs has begun testing its FAssets system on the Coston testnet, enabling non-smart contract tokens like BTC, XRP, and DOGE to be used in smart contracts and DeFi applications.
  • The FAssets system allows these legacy tokens to be minted into synthetic assets on the Flare network, potentially unlocking new value and use cases without centralized intermediaries.
  • After testing phases on Coston and Songbird networks, FAssets aims for deployment on the Flare mainnet, offering users and dApps the chance to earn FLR tokens and contribute to the DeFi ecosystem.

Flare Labs, a prominent name in blockchain research and development, has recently announced the commencement of testing for its FAssets system on the Coston testnet. This significant development is set to revolutionize the use of non-smart contract tokens in decentralized finance (DeFi) and smart contracts.

Flare Labs to bridge legacy tokens into DeFi

At the core of this innovation is the ability of FAssets to integrate traditional, non-smart contract tokens – such as BTC, XRP, and DOGE – into the Flare network. This integration is achieved by minting these tokens into FAssets, which then enables their use in DeFi applications for earning yields or rewards. Hugo Philion, CEO of Flare Labs, emphasized the importance of this advancement, noting that over 70% of blockchain assets currently lack smart contract functionality, limiting their utility in DeFi. FAssets offers a solution to this by creating a delta-neutral synthetic with multi-collateral backing, thus facilitating the representation of these legacy assets on a smart contract chain without the need for a centralized intermediary.

Testing phases and future prospects

The initial private Beta phase of FAssets is being conducted on the Coston testnet. This phase involves thorough testing of all system components, with Flare Labs and its partners adopting various roles within the system to ensure comprehensive evaluation. The testing process includes simulating market volatility to assess the system’s resilience under stress. Following successful trials on the Coston testnet, the FAssets system will undergo further testing on the Songbird canary network before its official launch on the Flare mainnet.

Once FAssets are operational on the Flare mainnet, users and decentralized applications (dApps) will have the opportunity to earn FLR tokens from a cross-chain incentive pool. This reward system is designed to encourage the sustainable addition of value to the Flare network.

Enhancing Blockchain Utility with Flare

Flare’s role extends beyond facilitating smart contracts and DeFi applications. The platform, powered by software developed by Flare Labs and licensed to the Flare Foundation, serves as a blockchain for data. It aims to broaden the utility of blockchain technology by providing developers with trustless access to a wide range of data. Key components of Flare include the State Connector and the Flare Time Series Oracle. The State Connector achieves consensus on external blockchain and web2 API event information, enabling its trustless use in Flare’s smart contracts. Meanwhile, the Flare Time Series Oracle delivers decentralized data feeds to dApps, eliminating reliance on centralized data providers.

As Flare Labs continues its testing of FAssets, the blockchain community eagerly anticipates the potential unlocking of vast, previously untapped value within the legacy token market. This advancement promises to broaden the horizons of DeFi and smart contract applications, marking a new era in the evolution of blockchain technology.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Binance
Cryptopolitan
Subscribe to CryptoPolitan