Flare Labs, a blockchain research and development company, has announced the testing of its FAssets system on the Coston testnet. The FAssets system aims to integrate traditional, non-smart contract tokens, such as BTC, XRP, and DOGE, into the Flare network, enabling their use in decentralized finance (DeFi) and smart contracts.
At the core of this innovation is the ability of FAssets to mint non-smart contract tokens into FAssets, which are synthetic representations of these tokens on the Flare network.
FAssets can then be used in DeFi applications for earning yields or rewards, as well as in smart contracts for executing complex logic.
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.
The initial private Beta phase of FAssets is being conducted on the Coston testnet, a public testnet for the Flare network. This phase involves thoroughly testing 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. Users can earn FLR tokens by minting FAssets, providing collateral for FAssets, or using FAssets in DeFi applications or smart contracts.
Flare network serves as a blockchain for data
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. This allows Flare to import data from any blockchain or web2 API without relying on oracles or validators.
The State Connector also enables Flare to export data to any other blockchain or web2 API, creating a two-way bridge for data interoperability.
Meanwhile, the Flare Time Series Oracle delivers decentralized data feeds to dApps, eliminating reliance on centralized data providers. The Flare Time Series Oracle leverages the network’s native token, FLR, to incentivize the provision of high-quality data.
The Flare Time Series Oracle also allows dApps to customize their data requirements, such as frequency, granularity, and sources.
This significant development is set to revolutionize the use of non-smart contract tokens and smart contracts in DeFi, unlocking vast, previously untapped value within the legacy token market.
