Flare, the blockchain for data, has officially launched FXRP (tokenized XRP) on Songbird, its canary network. This milestone advances Flare’s FAssets protocol, a system designed to enable non-smart contract cryptocurrencies like XRP, BTC, and DOGE to connect with DeFi applications.
Open Beta Success Sets the Stage
During the open beta, the FAssets system saw over 263,000 mints and 395,000 redemptions, with participation from more than 48,000 users. This extensive testing phase provided Flare Labs with critical insights, helping them optimize system performance and user experience. The shift to Songbird now transitions testing from a controlled environment to real-world scenarios, where network conditions and user behavior can be analyzed more effectively.
The FXRP rollout on Songbird introduces several new features to enhance usability, security, and system integrity. One key improvement is the introduction of a "handshake" mechanism. This feature allows permissioned agents to verify the identities of addresses performing minting and redeeming activities, adding an extra layer of security.
Other safeguards include a $2 million issuance cap per asset to maintain controlled liquidity and prevent market disruptions. Flare Labs has also committed up to $300,000 in underwriting to cover potential losses, offering an added layer of protection for participants during testing.
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Live Testing Brings Real-World Scenarios
Unlike simulations, Songbird’s live testing environment incorporates the use of Songbird’s native token (SGB) and Flare’s USDX stablecoin as collateral. This approach enables developers to assess the system’s resilience and ensure it operates smoothly under live conditions.
Participants have the opportunity to earn retroactive rewards during this phase, with Flare offering $260,000 in rFLR airdrops for minting and redeeming activities.
Additional incentives in SGB will also be distributed to encourage trading of FAssets. The testing period for each asset will last a minimum of six weeks to ensure thorough evaluation.
Bridging Non-Smart Contract Assets to DeFi
Flare’s FAssets system is a major step forward for DeFi, enabling popular cryptocurrencies like XRP, BTC, and DOGE to interact with decentralized applications. By unlocking access to trading, lending, and staking, Flare’s model introduces new possibilities for these assets within the DeFi ecosystem.
Unlike traditional custodial solutions or multisig setups, FAssets employ an overcollateralization model. This system ensures that each bridged unit of XRP, BTC, or DOGE is backed by a greater collateral value, minimizing trust dependencies and reducing over-leveraging risks. To maintain system integrity, automated liquidation mechanisms are in place to protect users in the event of collateral shortfalls.
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Laying the Groundwork for Mainnet Deployment
The Songbird phase serves as a critical foundation for the broader rollout of FAssets on the Flare mainnet. By running extensive tests in a live environment, Flare can address edge cases and refine its systems, ensuring seamless performance under any conditions.
Flare’s ultimate goal is to bring non-smart contract cryptocurrencies into the heart of DeFi. By making these assets liquid and programmable, Flare aims to unlock multi-trillion-dollar markets and provide developers and users with new opportunities for growth and innovation.
About Flare
Flare is a blockchain designed to support data-intensive use cases, including Machine Learning/AI, RWA tokenization, gaming, and social applications. As the only smart contract platform with decentralized oracles secured at the network layer, Flare enables trustless access to a wide range of data sources. This unique approach reduces the cost and complexity of data acquisition, opening the door to new possibilities for developers and enterprises alike.
