Dubai, United Arab Emirates, December 18th, 2024, Chainwire
Flare, the blockchain for data, has officially launched FXRP (tokenized XRP) on Songbird, its canary network. This milestone marks the next phase in rolling out Flare Labs' FAssets protocol, designed to enable non-smart contract cryptocurrencies such as XRP, BTC, and DOGE to engage with DeFi applications.
During the open beta, the FAssets system facilitated over 263,000 mints, 395,000 redemptions, and engaged more than 48,000 participants. These trials provided valuable insights, highlighting user behavior and system performance under various network conditions. Following a successful beta phase, FXRP's rollout on Songbird introduces several enhanced features to ensure real-world usability and security ahead of their deployment on the Flare mainnet.
With FXRP now live on Songbird, testing shifts from simulated environments to real-world scenarios, incorporating Songbird's native token (SGB) and Flare's US Treasury-linked stablecoin, USDX, as collateral. This phase aims to refine system resilience and usability while accurately reflecting behavior in a live network environment. One of several key improvements is the introduction of an optional "handshake" mechanism, enabling permissioned agents to verify the identity of addresses performing minting and redeeming.
FXRP on Songbird incorporates several safeguards to ensure a controlled and transparent testing environment including a $2 million issuance cap per asset to maintain controlled liquidity. In addition, Flare Labs is underwriting up to $300,000 in potential losses to protect participants during testing.
Developers can now explore the parameters of the Songbird test on the Flare Developer Hub, while users can access the minting app through multiple platforms to avoid reliance on a single point of access. During the testing period on Songbird, there will be the opportunity for participants to earn retroactive rewards including a $260,000 rFLR airdrop for minting, redeeming, and additional incentives in SGB for trading FAssets. A minimum testing period of six weeks per asset has been earmarked to thoroughly evaluate the system.
The FAssets system represents a breakthrough in bridging cryptocurrencies like XRP, BTC, and DOGE with DeFi. By enabling these assets to interact with decentralized applications, Flare unlocks new opportunities for trading, lending, and staking while maintaining high levels of security through its overcollateralization model.
Unlike traditional custodial solutions or multisig setups, FAssets ensure each bridged unit is backed by greater collateral value, minimizing trust dependencies and over-leveraging risks. This model is further supported by automated liquidation mechanisms to protect users and maintain system integrity.
The Songbird phase lays the foundation for the subsequent deployment of FAssets on the Flare mainnet. Rigorous testing on Songbird will identify edge cases and refine the system to ensure it performs seamlessly under all conditions.
Flare's long-term vision includes integrating non-smart contract cryptocurrencies into DeFi markets, transforming them into liquid, programmable assets that can fully participate in the decentralized economy. This step brings Flare closer to realizing its vision of becoming a liquidity hub for integrating assets across multi-trillion-dollar markets.
About Flare
Flare is the blockchain for data: an EVM smart contract platform specifically designed to support data intensive use cases, including Machine Learning/AI, RWA tokenization, gaming and social. With decentralized, enshrined oracles secured at the network layer, Flare is the only smart contract platform optimized for decentralized data acquisition: price & time series data, blockchain event & state data, and web2 API data. By giving developers trustless access to the broadest range of data and data proofs at scale and for minimal cost, Flare expands the utility of blockchain and supports the development of new and improved use cases.