Flare Labs Begins Testing FAssets on Coston Testnet Paving Way for Non-Smart Contracts to Flare

FinanceFeeds Editorial Team

Flare Labs has introduced FAssets on the Coston testnet, enabling the integration of non-smart contract tokens like BTC, XRP, and DOGE into the DeFi ecosystem.

Flare Labs, a blockchain research and development company, has recently launched a test version of FAssets on the Coston testnet of Flare. This release aims to introduce smart contracts and DeFi to older tokens. The FAssets system enables non-smart contract tokens like BTC, XRP, and DOGE to interact trustlessly with smart contracts on Flare. By converting these tokens into FAssets, they become usable in earning yields or rewards on decentralized applications within the Flare network. Additionally, FAssets can be transferred to other networks once they are on Flare.

Hugo Philion, the CEO of Flare Labs, states: “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. 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.”

Initially, a private Beta of the FAssets system will take place on the Coston testnet of Flare, followed by implementation on the Songbird canary network, before the official launch on the Flare mainnet. The Beta will thoroughly test all major components, with Flare Labs and partners undertaking all necessary roles and providing essential infrastructure. Test assets will be used to mimic market volatility and evaluate the system’s stability under stress. The Beta will eventually open up for external participants.

Once FAssets are operational on the Flare mainnet, users and decentralized applications (dapps) can earn FLR tokens from the cross-chain incentive pool as a reward for adding sustainable value to Flare, in addition to DeFi yields. For further understanding of FAssets, an explainer video is available at: https://youtu.be/9OqC-aIWdRI.

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