- The Flare Networks based DeFi protocol will launch 6 products to add utility to the XRP digital asset and Spark token.
- Flare Finance products will use a multi-token ecosystem to provide governance and rewards to their users.
In early October, Flare Finance announced the launch of the testing phase for the first DeFi protocol based on Flare Networks. At the time of the announcement, Flare Finance, an entity not associated with Ripple’s partner Flare, launched a test on the Costco network. In a more recent publication, they provided an update on their progress.
Flare Finance is a DeFi protocol that will be deployed on the Flare network. The protocol will launch “6 products in one” for the benefit of its users. The first is a platform called FlareX which will operate as a decentralized spot exchange in “a multi-token ecosystem”. The platform will integrate swaps.
Additionally, the FlareFarm governance platform will enable productive agriculture. Their third product will be a stablecoin distribution platform called FlareUSD and three other platforms they will offer: loans, risk-based mutual funds and yield farming and a pool to provide liquidity, called FlareMine.
The protocol will offer XRP owners and users of Flare Networks and its Spark token a low-cost “DeFi experience”. Flare Finance products have been developed with the intention of being able to be used by anyone, without technical or advanced knowledge. In this way, they try to remove traditional intermediaries such as financial advisors and banks.
Users will be able to interact with Flare Finance products using Flare Networks’ Flare wallet. Additionally, the Flare Finance ecosystem will support the tokens: Spark, FXRP, FLR, YFLR, and FUSD. The team behind Flare Finance says:
Flare Finance seeks to provide XRP / Spark users the fastest and cheapest DeFi experience thanks to the superior architecture of Flare Network and XRP Ledger. Our user experience will be based on providing the simplest means possible to unlock and use the value contained in your FLR and XRP.
Flare Finance, proof of legitimacy?
In its testing phase, the XRP community has expressed suspicions about the project. Some users indicated that the lack of activity in the testing phase caused the project to lose legitimacy. However, the Flare Networks Twitter manager indicated that there were communications with Flare Finance. They pointed out that the project is “interesting”, but advised users to do “their own research”.
As reported by CNF, Flare Networks is a utility fork based on the XRP digital asset. Supported by Ripple’s investment arm, Xpring, Flare Networks’ goal is to expand XRP use cases by integrating the Ethereum virtual machine to execute smart contracts. Flare Networks has caused a stir in the crypto space for the launch of its Spark token which will be received by XRP holders who complete an airdrop registration process.