The system allows users to transform their non-smart contract assets into smart contract-capable tokens, allowing them to participate in DeFi.
Flare Labs, the blockchain research and development wing of Flare network, announced the launch of an initial private beta test of its FAssets on the Coston network, the testnet version of Flare network. The latest move aims to bring smart contracts and decentralized finance capabilities to blockchain tokens with no smart contract capabilities.
The initial private beta test 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 aims to stress-test the system and allow simulation of market volatility, given the FAssets are backed using corresponding tokens, and to assess the system’s robustness under stress.
Speaking on the latest milestone, Hugo Philion, CEO of Flare Labs praised the introduction of FAssets to Flare, stating the massive impact these tokens will bring in the overall blockchain world.
“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,” Philion stated. “FAssets are formally a Delta neutral synthetic with multi collateral backing which enables [non-smart contract] legacy tokens to be represented on a smart contract chain without requiring a centralized third party.”
The FAssets system is a novel technology that transforms legacy non-smart contract tokens such as BTC, XRP & DOGE to be used trustlessly with smart contracts on Flare. With 70% of total crypto value currently locked into such assets, the minting of these tokens via the FAssets system will allow users' assets access better capabilities and utilities, such as interacting with DeFi and smart contract platforms. Using FAssets, non-smart contract tokens can be used to earn a yield on DApps built on the Flare network. Once FAssets are fully launched, users will also be able to bridge the legacy tokens to other applicable networks.
“For developers, it will be a new and trustless means to access new potential users and a large amount of currently untapped value,” Philion added.
The initial private beta test of the FAssets system will be conducted on Flare’s Coston network with subsequent implementation to follow on the Songbird canary network. As the testing progresses, Flare Labs will provide access to external participants. If successful, the FAssets system will be launched on the Flare mainnet. The timeline for the mainnet launch is yet to be announced.
Finally, the FAssets system will also allow users and DApps to earn FLR tokens from the cross-chain incentive pool as a reward for bringing sustainable value to Flare.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
