Flare Finance has announced a partnership with XinFin Network which could be one of the most significant events of crypto space in 2021. While a lot has been spoken about interoperability and bridging communities, Flare Finance is on the way to becoming the epicentre of communities.
With this partnership, Flare Finance and XinFin Network would have a bi-directional bridge allowing assets from either chain to be wrapped and utilized onto the other chain.
So, essentially XDC would be wrapped and bridged from XinFin Network to Flare Network. Similarly, Flare Network tokens could be minted to XinFin Network bringing F-Assets to XinFin Network.
The True Interoperability
Flare Finance has also announced that it will support XinFin Network’s native token, XDC across all the products. This would mean that XDC holders could mine YFIN by participating in the Flare Farm or XDC holders could use their XDC as collateral via FlareLoans to take out loans or borrow stable coins by staking XDC while earning a variable APY in YFIN on borrowing as well as lending.
Flare Finance has a total of 6 products which can be studied in detail from the Flare Finance website. It is important to note that Flare Finance is the first DeFi network to be built on Flare Network. However, even before its release, many are already anticipating Flare Finance to become the best DeFi Network.
It is essential to understand that Flare Finance is a separate entity from the Flare Network and is a platform built on it. The Flare Network is a distributed network running the Avalanche consensus protocol adapted to the Federated Byzantine Agreement and leveraging the Ethereum Virtual Machine.
It aims at unlocking the value of locked assets on chains that do not have native smart contracts.
This will enable additional utility for these tokens while the network’s native token will function as collateral for the trustless issuance of assets. XRP, XLM, Doge, and LTC will be the F-assets at the launch of the network. Once the network is live, other assets could be added based on voting. Algorand and XDC are a few tokens that are anticipated to apply for integration with Flare.
On the other hand, XinFin Network is an enterprise-ready hybrid blockchain for trade and finance. It is widely considered as an alternative to Ethereum courtesy of its capacity of 2000 TPS with low fees. The average time to complete a transaction on XinFin Network’s protocol, XDPoS, is only 2 seconds. XinFin Network is also counted among the most energy-efficient networks as it consumes only around 0.0000074 TWh as per data available on XinFin website.
XinFin Network is also believed to be working with governments to reduce the gap in global infrastructure. Private chain generation, EVM parallelization, and hardware integration are expected to arrive on the XinFin Network in the future.
The Future of DeFi
Flare Finance has already announced that a range of assets including FLR, XRP, LTC, XLM, DOGE, ALGO, ADA, SHIB, SANSHU, TEL, CEL, BNB, CAKE, and now XDC would be utilized in the Flare Finance ecosystem. More assets are expected to be added by voting once the network goes live.
With such a well-rounded ecosystem comprising assets from across chains, Flare Finance is not only linking these chains but communities and ecosystems as well.
For DeFi to ever become a viable alternative to banks for the general public, such wider integrations would be vital. It appears Flare Finance has already taken the first step in the right direction and positioned itself to be a leader of DeFi space.
The race to be the top DeFi platform has only intensified with the advancements made by Flare Finance. The game is only beginning, so HODL your bags and be prepared to become part of cutting-edge DeFi platforms.