Asset Wrapping

There are two forms of asset wrapping on the Flare Network. As Spark (FLR) is the native asset of the Flare Network, it does not exist solely as a smart contract. Therefore, in order to be able to delegate votes associated with FLR, it needs a smart contract wrapper. This just means placing FLR in a smart contract that a user will maintain custody over. The smart contract wrapper provides FLR the power to participate in certain applications on the Flare Network and vote delegation. This can all be done via a participating wallet application or user interface.

The other form of asset wrapping includes bringing an asset not native to the Flare Network onto it. Flare Finance has created a protocol termed FlareWrap that allows upwards of 20 different crypto assets to be brought onto the Flare Network. Users will have to interface with the Flare Finance interface to do this. Additionally, the process of wrapping includes locking the asset on its native protocol and then minting that asset on the Flare Network in the form of a smart contract. 

Vote Delegation

Spark (FLR) comes with the ability to delegate votes to other parties on the Flare Network, when wrapped in a smart contract. Governance voting is the process of either voting, abstaining, or delegating to another party to vote on your behalf for governance proposals. FTSO vote delegation includes choosing signal providers to utilize the detachable vote in the FTSO process, which does not require the user to give up custody of their Spark (FLR). Additionally, as F-Assets are smart contracts on the Flare Network, they will automatically have the ability to delegate their associated votes to signal providers in the FTSO process. Voting can be accessed by supporting wallet applications and user interfaces.

Applications

APY Cloud

Flare Finance is deploying a yield aggregation protocol on their ecosystem of applications to promote ecosystem growth and governance token price. Several of the applications on Flare Finance will deliver a portion of collected fees to the APY Cloud, which consists of all listed assets on Flare Finance. The collected fees and reserves set by the team prior to launch will be used to pay the yield going to users staking YFIN and YFLR in the governance staking pool. The APY Cloud aims to keep a balance between total value locked (TVL) and ecosystem participation. 

F-Asset System

The F-Asset System is an integral application on the Flare Network. It facilitates the trustless issuance of asset value onto the Flare Network. Every F-Asset minted through the F-Asset System has a 2.5x collateral-backing in FLR, which is denominated in USD. Agents are responsible for posting and maintaining the FLR collateral. Additionally, they are responsible for answering redemptions, when users decide they would like to have their underlying asset back. XRP, Litecoin, Dogecoin, and Stellar are the first four F-Assets and the addition of more is subject to FLR holder governance.

FlareFarm

The FlareFarm platform is the primary governance yield farming platform for the Flare Finance ecosystem. Users will be able to stake individual assets and liquidity pool (LP) tokens in applicable FlareFarm pools to earn the primary governance token (YFIN).

FlareLoans
FlareMine

FlareMine allows Proof-of-Work (PoW) miners to automatically swap mined assets like Bitcoin or Litecoin into a F-Asset of their choosing. The F-Asset will automatically start earning yield from one of the F-Asset reward pools.

FlareMutual
FlareWrap

FlareWrap allows an approved listing of assets outside of the Flare Network to be wrapped onto it. Flare Finance is dubbing these eligible assets as Y-Assets. Users will pay a fee based on how much value they wrap onto Flare Finance. This process includes locking the underlying asset on its native blockchain, then minting a value representation of that asset on Flare Network in the form of a smart contract. A relay bridge is used to communicate between the Flare Network and underlying blockchain. Additionally, FlareWrap will allow users to wrap their assets onto other blockchains as well so it works both ways. 

FlareX

FlareX is the decentralized exchange (DEX) for the Flare Finance ecosystem. FlareX will host liquidity pools between two assets with the value split 50/50. Users can either provide liquidity to the pools or use them for trading. When a user provides liquidity with their assets to a FlareX pool, they are allowing other users to swap between two assets in return for fees and liquidity pool (LP) tokens, which can be used in other applications like FlareFarm. FlareX will also provide users with a way to margin trade and track asset price movements with charts and metrics. 

Governance Staking Pool

Flare Finance will be featuring a governance staking pool for its two governance tokens, YieldFlare (YFLR) and YieldFin (YFIN). Users can stake both tokens in return for a fixed range yield set by governance. The fixed range yield is set between 5 – 35% APY at the launch of Flare Finance. Additionally, only YFLR and YFIN staked in this pool can vote on governance proposals. The yield delivered to YFLR or YFIN stakers is comprised of fees collected by the APY Cloud from the various applications in the Flare Finance ecosystem. This means the assets earned via the governance staking pool will be diverse and grow as the ecosystem grows.

Launchpad

Flare Finance will have a token launchpad platform for projects launching a new token that is composable with the Flare Finance ecosystem. YFIN and YFLR holders will be able to earn the token(s) distributed through the launchpad by locking them up for a certain period of time. The lockup period will also include additional rewards paid to participants locking up their governance tokens, which comes from the fees to list new assets on the launchpad. 

Probity

Probity is the flagship protocol for the Trustline ecosystem. Probity is a series of different smart contracts that will facilitate the borrowing and lending platform of Trustline. Users who lock up accepted collateral can mint the Aurei (AUR) stablecoin, which is then loaned out by the smart contract system to users in return for interest paid back to the collateral providers. 

S-Asset Sytem

The S-Asset System is the Songbird Network variant of the Flare Network’s F-Asset System. It is subordinate to Flare Network governance even though it exists on an independent blockchain. 

Assets

Aurei (AUR)

The Aurei (AUR) stablecoin is created via the Probity Vault system on the Trustline platform. Currently, the stablecoin will be backed by either FXRP or FLR with more collateral options in the future. Its collateral rates will vary depending on assets. AUR can be issued on the Flare Network and XRP Ledger. In fact, it will be the first ever decentralized stablecoin to be issued on the XRP Ledger. 

DaoFlare (DFLR)

DaoFlare (DFLR) will be a short term token utilized in the Initial DAO Offering (IDO) from Flare Finance. DFLR will be airdropped to eligible FLR holders around 30 days after the launch of Flare Network. DFLR can then be swapped for the secondary governance token, YFLR, during a period of 7 – 10 days. Once the period ends, all DFLR tokens will be burned and cease to exist. Additionally, 1M DFLR will be rewarded to the Songbird Network variants for the FlareFarm and FlareLoans applications on the Experimental Finance (ExFi) ecosystem. Users will be able to swap any DFLR earned through ExFi prior to the end of the swapping period for YFLR. 

F-Asset

A F-Asset is a trustless representation of an asset native to another blockchain on the Flare Network. The FTSO ensures the accurate representation of each assets global trading value on the Flare Network. F-Assets will include XRP, Litecoin, Stellar, and Dogecoin at the launch of Flare Network with more to be added through governance in the future. F-Asset owners are able to earn daily yield from one of two F-Asset reward pools. XRP, Stellar, and Dogecoin owners can earn FLR daily from the General F-Asset Pool and Litecoin owners can do the same through the dedicated Litecoin Pool. Additionally, F-Assets can use detachable FTSO votes in the same manner FLR holders would, but are ineligible to receive the FTSO inflation rewards for doing so. However, signal providers may incentivize F-Asset holders for their delegated votes, which increases their voting power to the FTSO.

Gala (GALA)

Gala token (GALA) is the native currency for the Gala Games project. It can be used to purchase NFTs utilized in web-based games created by Gala Games. Additionally, it will be able to be utilized in other projects built on top of the Flare Network. There is a possibility for it to become an in-game currency or possibly as a means to swap between different in-game currencies throughout their gaming ecosystem.

Panther (ZKP)

The Panther token (ZKP) is the native asset of the multichain Panther Protocol project. ZKP can be used to facilitate the private use of DeFi applications across many networks. It also is the governance token for the Panther Protocol ecosystem.

S-Asset

S-Assets are the F-Asset variant on the Songbird Network. They will function in the same way as F-Assets on the Flare Network just through an independent blockchain. 

Songbird (SGB)

Songbird (SGB) will be the native asset of the Songbird Network. It will function in the same way as FLR does on the Flare Network just on its own independent blockchain. All eligible FLR airdrop claimants can receive SGB. For self-custody claimants, SGB will be delivered to the ETH address signed into the message key field of their XRP account. For exchange claimants, SGB will need to be asked for from their respective exchange if they do not announce that they are delivering the token airdrop.

SongbirdFin (SFIN)

SongbirdFin (SFIN) will serve as the primary governance token on the Experimental Finance (ExFi) platform launching on the Songbird Network. 10k of the 11k supply will be fairly distributed to participants of the FlareFarm, FlareLoans, and FlareMutual applications on ExFi over a period of two years. 

SongbirdFlare (SFLR)

SongbirdFlare (SFLR) will serve as the secondary governance token on the Experimental Finance (ExFi) platform launching on Songbird Network. Users holding Songbird (SGB) on the snapshot date for the Initial DAO Offering (IDO) set to happen thirty days after the launch of the Flare Network will be eligible to receive their share of a 40M SFLR airdrop. 

Spark (FLR)

Spark (FLR) is the native asset of the Flare Network. FLR is being airdropped to eligible XRP holders, which was determined on the snapshot date of 12/12/20. XRP holders will be receiving a roughly 1:1 airdrop in FLR for every XRP they claimed for. FLR is used for gas/transaction fees, governance voting, collateral, and the FTSO process. Inflation of FLR is delivered via the FTSO and is set at 10% per year, which can be changed by governance six months after the launch of Flare Network.

Trustline Credit Network (TCN)

The Trustline Credit Network token (TCN) will serve as the primary governance token for the Probity DAO. Additionally, it can be used for transaction within the Trustline ecosystem. Users receiving interest from the Probity Vault system will be able to receive that interest in TCN. TCN is set to act as a semi-stablecoin that can float freely above its $1.00 peg as it comes with certain governance rights. 

Y-Asset

Y-Assets are synthetically wrapped assets onto the Flare Network via the Flare Finance FlareWrap application. These assets can be used throughout the Flare Finance DeFi ecosystem. 

YieldFin (YFIN)

YieldFin is the primary governance token for the Flare Finance ecosystem. It can be utilized in every application on the platform including the governance staking pool and launchpad. Users will be able to earn a fairly distributed 10k YFIN out of its total 11k supply over a two year period. YFIN will be distributed to participants in the FlareFarm, FlareLoans, and FlareMutual applications. 

YieldFlare (YFLR)

YieldFlare (YFLR) is the secondary governance token of the Flare Finance ecosystem. It can be utilized across the entire suite of products on Flare Finance including in the governance staking pool and launchpad. 40M of the total 110M YFLR supply will be distributed to FLR holders via an Initial DAO Offering (IDO). The snapshot for this IDO will take place thirty days after the launch of the Flare Network. Eligible FLR holders will then receive a DaoFlare (DFLR) airdrop, which must be swapped for YFLR within 7 – 10 days. 

WrappedSpark (WFLR)

As Spark (FLR) is the native asset of the Flare Network, it is not inherently a smart contract. Therefore, to participate in certain applications on the Flare Network, users will have to wrap their FLR in a smart contract, which they maintain custody over. This may be something that happens in the background of the user interfaces for Flare Network. However, if not, then users will have to click a button via their interface to wrap any number of FLR.

Components

Avalanche Consensus Protocol

The Avalanche Consensus Protocol utilizes a Proof-of-Stake (PoS) consensus mechanism that decouple the application layer of a blockchain from the consensus layer. Essentially, dApp creators do not need to know how nodes come to agreement rather that they just do. 

Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) defines the rules and criteria for determining a new valid blockchain state over time. The EVM along with the Solidity smart contract language is what powers dApps and their advanced functionality. 

Flare Consensus Protocol

The Flare Consensus Protocol is the first ever turing-complete, federated byzantine agreement blockchain. It is composed of the Avalanche Consensus Protocol, which is retooled to feature federated virtual voting. The Flare Consensus Protocol allows the Flare Network to integrate smart contract capabilities through the EVM as a virtual state machine. 

Flare Time Series Oracle (FTSO)

Flare Network is composed of an on-chain oracle termed the Flare Times Series Oracle (FTSO). The FTSO is responsible for the decentralized parsing of off-chain data to represent it on-chain in an accurate manner. F-Asset value is maintained through the FTSO on a sub-minute basis. FLR and F-Assets represent individual data points when utilized in the FTSO. Signal providers scrape the internet to determine the most accurate global price at any given time. Signal providers then push their data estimates through the FTSO via FLR and F-Asset vote delegation. The FTSO then signals to the Flare Network the appropriate values for assets brought on-chain. 

Songbird Time Series Oracle (STSO)

The Songbird Time Series Oracle (STSO) is the Songbird Network variant of the Flare Network’s Flare Times Series Oracle (FTSO). It is subordinate to Flare Network governance even though it exists on an independent blockchain.

State Connector System

The State Connector System allows the Flare Network to securely observe and interpret changes to the state of any integrated blockchain. Validators on Flare Network will also operate on the integrated blockchains to submit state changes back to the Flare Network to progress the blockchain forward.

Entities

Flare Finance Foundation

The Flare Finance Foundation will be a non-profit, decentralized autonomous organization (DAO) directed by a Board of Directors at its outset. Further down the line, these Board Members will become community governed autonomous entities. 

Flare Foundation

The Flare Foundation will be responsible for curating the Flare Network. The foundation will utilize FLR to pay for their expenses and can be tasked to do anything by Flare governance. 

Flare Limited

Flare Limited is the incorporated entity building the Flare Network, which is headed up by CEO Hugo Philion. Flare Limited plans to participate in the Flare Network ecosystem by acting as both a signal provider and agent. Additionally, the Flare team has expressed interest in building composable projects on top the Flare Network.

Probity DAO

The Probity DAO will be the governing board over the Trustline ecosystem. It is looking to become a licensed entity in the United States that will allow other interested members in the community to join. It is possible that being part of the Probity DAO could result in profit sharing from fees paid throughout the ecosystem.

Participants

Agent

Agents on the Flare Network are responsible for posting and managing the FLR collateral used to back the minting of F-Assets. Additionally, as F-Asset holders have the right to claim the underlying asset, the agents will be responsible for honoring redemptions in a timely manner. For their collateral backing, agents are paid in fees and receive the underlying asset being minted onto the Flare Network to be utilized as they wish. However, there is an important caveat that they must honor redemptions or face harsh economic consequences.

Signal Provider

Signal providers on the Flare Network are responsible for delivering continuous and accurate data estimates to the FTSO to represent off-chain values on the Flare Network. Signal providers can provide their own F-Asset and FLR votes to do this, but they also can receive delegated votes from other parties to perform this service on their behalf. Signal providers may take fees for this service. Additionally, the entire process is non-custodial. 

Validator

Validators on the Flare Network will operate on the ecosystem as well as the integrated blockchains’ ecosystems. These validators are tasked with ordering transactions and confirming validity for consensus plus digesting state changes from integrated blockchains.

Projects

888 The New World

888 The New World is a NFT artist showcase platform with many well-known names in the industry partnered with them, which is headlined by Paris Hilton. 888 TNW features much lower fees than the industry standard for listing NFTs, which is set at 8.88%.

Experimental Finance (ExFi)

Experimental Finance (ExFi) is the Flare Finance variant launching on the Songbird Network. Once fully launched, it will feature all the same protocols as the Flare Finance ecosystem. Additionally, it will have two governance tokens, which are SongbirdFin (SFIN) and SongbirdFlare (SFLR). Owners of SGB will be able to receive their share of a 40M SFLR airdrop slated for 30 days after the launch of the Flare Network. 

Flare Finance

Flare Finance is launching a huge DeFi ecosystem on the Flare Network that will provide liquidity, lending, swapping, staking, borrowing, and insurance protocols. The two governance tokens are YieldFin (YFIN) and YieldFlare (YFLR). 40M YFLR will be distributed during Flare Finance’s Initial DAO Offering (IDO). Around 30 days after the launch of the Flare Network, their will be a snapshot of FLR holders. DaoFlare (DFLR) will be airdropped to these eligible holders and then used to swap for YFLR. Finally, Flare Finance will feature an automated yield aggregator and governance staking pools. 

Flare Network

Flare Network is the first ever federated byzantine agreement consensus protocol that enables the functionality of smart contracts through the use of the Ethereum Virtual Machine (EVM). Spark (FLR) is the native token of the Flare Network, which is being airdropped to eligible XRP holders over a course of three years starting at launch. 

Gala Games

Gala Games is a multichain, web-based gaming blockchain platform. The native asset for Gala Games is the GALA token. Users can purchase in-game items via NFTs, so that they can maintain ownership of their purchased or earned gaming assets. 

Panther Protocol

Panther Protocol is a multichain, DeFi privacy protocol. It enables users to access blockchains anonymously with the ability for selective KYC/AML, which creates a regulatory compliant DeFi privacy solution. Panther Protocol will feature dark pools and a layer one interchain decentralized exchange (DEX).

Songbird Network

Songbird Network is the “Canary Network” for the Flare Network ecosystem. It is an independent blockchain, but subordinate to the governance of Flare. Songbird Network will be used as a real-life testing environment for production ready applications. While most test nets feature assets with no monetary value, the Songbird Network will have real value being facilitated throughout it. 

Sparkles

Sparkles is a NFT market platform launching on the Flare Network. 

Trustline

Trustline is a DeFi and P2P transaction ecosystem launching on the Flare Network. Certain components of Trustline will also operated on the XRP Ledger. Trustline will feature a borrowing and lending protocol and payments application. Additionally, they will be creating fiat on and off-ramps. 

Wallets

Bifrost

Bifrost is a hot, self-custody wallet solution created by Towo Labs in conjunction with a partnership with the Flare Limited team. Bifrost is planning to be multichain and will feature the Flare and Ethereum Networks at the outset. Additionally, many other assets like XRP, BTC, and LTC can be held on the wallet. Users will be able to connect to DeFi applications as well as delegate votes and mint/redeem F-Assets through it. There are also plans to incorporate the custody of NFTs.

D'Cent

D’Cent is a biometric, hardware wallet device that allows users to store crypto assets in cold storage (or offline). D’Cent is building a FTSO Portal to allow users to easily wrap/unwrap their FLR and delegate its FTSO votes between varying signal providers. 

Ledger

Ledger is a hardware, self-custody wallet solution. Its device is a USB drive used to sign for transactions and store private keys offline, when not in use. Ledger will feature a Flare application that will allow users to interact with FLR through their interface; however, it is unknown at this time if additional functionality with the Flare Network will be incorporated into Ledger Live.  

MetaMask

MetaMask is one of the premier Web3 wallet solutions in the market. It can connect to many different blockchains and features a browser plug-in for connecting to dApps.