- Flare Labs unveils initial testing of FAssets system on Coston network.
- The system offers smart contract capabilities to non-smart contract tokens like Bitcoin and Dogecoin.
- Further testing phases will occur on the Songbird canary network before the mainnet launch.
In an announcement, Flare Labs, the research and development wing of Flare network, confirmed the commencing of testing the FAssets system on the Coston network. This initial private beta testing marks a significant milestone for the Flare network, allowing non-smart contract tokens such as Bitcoin, Dogecoin, and XRP to access smart contract functionalities and decentralized finance capabilities.
The FAssets system is a novel innovation by Flare Labs that allows non-smart contract tokens to be used trustlessly with smart contracts on Flare. Minting these FAssets-enabled tokens on Flare gives the users a wide range of capabilities for their tokens, giving them wider utility and functionality across the blockchain ecosystem.
For instance, a user may mint their Bitcoin into “FAbitcoin”, which has more utility across DeFi platforms than their original token. The user can now put their Bitcoin into yield-earning platforms, borrow and lend them, and other functions in DApps on Flare. In addition, the user will be able to bridge their FAssets to other networks.
“More than 70% of the total value of all blockchain assets do not have smart contracts and therefore can’t be efficiently deployed in DeFi. FAssets are formally a Delta neutral synthetic with multi collateral backing,” Hugo Philion, CEO of Flare Labs commented on the launch of FAssets testing. “They enable these legacy assets to be represented on a smart contract chain without requiring a centralized third party. For developers, it will be a new and trustless means to access new potential users and a large amount of currently untapped value.”
The beta testing phase will cover all major components of the system with Flare Labs and initial partners adopting all required roles within the system and providing the necessary infrastructure. This stage aims to rigorously test the system for market volatility and assess the system’s robustness under stress.
According to the team’s statement, the FAssets beta testing phase will start on Flare’s testnet Coston network, with further implementation to follow on the Songbird canary network before FAssets are launched on the Flare mainnet.
In addition to offering users a pathway to DeFi, the FAssets system is also expected to allow users and DApps to earn FLR tokens from the cross-chain incentive pool as a reward for bringing sustainable value to Flare. More functionalities will be launched once the mainnet version goes live.
The latest milestone follows the recent introduction of a ‘Reputation Score’ to the Flare network, in partnership with Bloxico. The score aims to allow community members to find the best infrastructure providers and decentralized oracles on Flare to place their capital.
