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- Kinetic will bring its market-leading borrowing and lending services to the Flare Network, allowing liquidity providers to earn block rewards seamlessly.
- The DeFi protocol will launch on the Flare testnet Coston2 to unlock liquidity, and unlike other platforms where rewards are sold instantly, Kinetic fosters liquidity provision through rewards.
The era of ecosystems is upon us, with the success of any project depending on how solid and robust its applications and community are. DeFi is a key driver to this success and for the Flare Network, this sector is getting a major push through a partnership with Kinetic.
Kinetic allows users to participate actively in the DeFi ecosystem through staking, borrowing, and providing liquidity. Supported by Rome Blockchain Labs (RBL), it enables users to activate both ERC20 and non-traditional assets and employ advanced financial strategies to generate yield.
All these benefits will now be available on the Flare Network. Commenting on the new partnership, core contributor Jake Hunsbusher said it will open up locked liquidity across the DeFi world and offer more possibilities to investors.
He added:
Through innovative tokenomics, we prioritise broadening user access to the protocol and facilitating yield generation, all while preserving the protocol’s long-term sustainability. Our primary aim is to break free from the typical cycle of devaluation and to spearhead a new era of financial empowerment.
For Flare users, one of the key benefits will be incentivized yields when they provide liquidity to the platform. Kinetic, on its part, will offer these assets to borrowers in an over-collateralized setting. Members will earn benefits such as interest rebates and a private Discord channel where they can connect with market experts
Kinetic’s innovative approach solves a common challenge for tokens that are deployed as protocol engagement rewards—investors tend to sell them off immediately, suppressing the price. With Kinetic, users get to work for these tokens and in so doing, put the tokens to work for themselves.
RBL is a key player in the partnership, with the company offering the technical infrastructure for the integration. It will also oversee the design of the platform, reveals a press release shared with CNF.
Flare Goes Big on DeFi with Kinetic Partnership
Kinetic, on its part, will benefit by tapping the Flare Time Series Oracle, the ecosystem’s market-leading price oracles, to power its decentralized products. Additionally, Kinetic can now rely on Flare for off-chain data, including crypto prices, without having to rely on any centralized entity.
Kinetic will also be able to leverage FAssets on its DeFi platform. FAssets are an offering from Flare Labs, the network’s sister company, that brings tokens such as BTC, DOGE and XRP to the world of DeFi, opening up a new world of possibilities for these leading tokens. These tokens are converted to FAssets and deployed on the Flare Network, and investors can start earning yield through them.
Commenting on the new partnership, Flare CEO Hugo Philion expressed excitement at the partnership, which he believes will set the foundation for a thriving DeFi ecosystem. He added:
This will also be a perfect demonstration of the power of the FAssets system, enabling decentralized lending and borrowing against non-smart contract assets like BTC, XRP, and DOGE.
