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- Flare Networks-based DeFi protocol will launch 6 products to add utility to the digital asset XRP and the Spark token.
- Flare Finance products will use a multi-token ecosystem to provide governance and rewards to its users.
In early October, Flare Finance announced the launch of the test 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 that will operate as a decentralized spot exchange in “a multi-token ecosystem”. The platform will integrate swaps.
Also, the FlareFarm governance platform will allow yield farming. Their third product will be a stablecoin distribution platform called FlareUSD and three other platforms that will offer: loans, risk-based mutual funds, and a yield farming and pool to provide liquidity, called FlareMine.
The protocol will give XRP holders and users of Flare Networks’ and its Spark token a low cost “DeFi experience”. Flare Finance’s products have been developed with the intention that they can be used by anyone, without technical or advanced knowledge. In that way, they seek 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. In addition, the Flare Finance ecosystem will support the tokens: Spark, FXRP, FLR, YFLR, and FUSD. The team behind Flare Finance states:
Flare Finance seeks to provide XRP/Spark users with the fastest and cheapest DeFi experience thanks to the superior architecture of Flare Network and the XRP Ledger. Our user experience will be based on providing the simplest means possible to unlocking and utilizing the value carried in your FLR and XRP.
Flare Finance, proof of legitimacy?
In its testing phase, the XRP community expressed suspicions about the project. Some users indicated that the lack of activity in the test phase caused the project to lose legitimacy. However, Flare Networks’ Twitter handler indicated that there was communication 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 great hype in the crypto space for the launch of its Spark token that will be received by XRP holders who complete an airdrop sing up process.
