Flare Finance
- Flare Finance is the first DeFi platform on the Flare Network.
- You will be able to participate in products such as Liquidity Pools to increase your yield streams.
- Flare Finance has its own tokens, YFLR and YFIN, used in governance voting and its DeFi applications.
- Flare Finance utilizes third-party technologies to offer KYC and AML compliant solutions, making it more attractive for institutional investment and responsible participation.
Flare Finance is the very first DeFi platform to exist on the Flare Network. This opens the door for FLR and F-Asset holders to earn additional streams of revenue on top of vote delegation and the F-Asset rewards pools. Users can now participate in DeFi products such as Liquidity Pools, Yield Farming, lending, and more. As stated in their whitepaper, Flare Finance has taken inspiration from other DeFi platforms such as Uniswap, Binance, Yearn, and others. Let’s take a quick look at the tokens available on Flare Finance as well as some of the products that can be utilized.
The main governance token on the Flare Finance with a max supply of 11,000 tokens. You can earn YFIN via participating in Liquidity Pools on FlareX and Yield Farming in FlareFarm. YFIN gives you votes in the Flare Finance ecosystem with significantly more weight than the platform’s second governance token, YFLR. 1 YFIN equals 10K YFLR votes.
A secondary governance token on Flare Finance that will also be used in most of the products within the ecosystem. Some of the main utilization of YFLR are using it for exchange fees on FlareX, vote governance, and staking it on one side of a Liquidity Pool.
The USD stablecoin on Flare Finance that will be used in most of the Liquidity Pools on FlareX, and that will also be available to trade on FlareX’s decentralized exchange.
The Flare Network's native asset used for collateral in the F-Asset system, vote delegation, and now used in Flare Finance's DeFi applications.
These are the same F-Assets that exist natively on the Flare Network, and will be able to be utilized in Flare Finance’s products.
Below is a brief summary of the products that we know of in the Flare Finance ecosystem. You will be able to use the tokens we listed in the previous section in these applications to earn additional income.
FlareX is a decentralized exchange where users can swap assets and trade on margin. Upon launch, FlareX will allow the following tokens to be traded:
Not only can you trade assets on FlareX, but it is here where you can participate in Liquidity Pools. The Liquidity Pools on FlareX will be a 50/50 split, meaning you must maintain an equal amount of value on both sides of the pool. Users are then rewarded in the form of LP tokens as a proportion of the amount of value you stake in the Liquidity Pool. To understand better how Liquidity Pools work, check out our article.
FlareFarm allows users to participate in Yield Farming. Both Single and Dual token Farming pools are available to users, meaning they only have to stake one token in a single token pool, and two in a dual. Dual token pools require LP tokens that were accrued in Liquidity Pools. Dual token pools will offer you a higher APY, but they obviously require you to have the LP tokens to participate in them.
FlareFarm also offers a token Launchpad for new projects. Launchpad projects do not require the use of LP tokens to participate in the pools, but rather new token projects must be joined with YFLR and YFIN instead. These new projects are decided by a governance vote, and remember that both YFLR and YFIN give you voting power on Flare Finance. This type of governance voting for new projects can reduce spam and scam projects on the platform.
The FlareWrap product allows for users to trustlessly bring their assets over from other smart contract platforms. One of the first and most well-known Wrapped Assets to be available on FlareWrap is ETH.
FlareLoans is an asset backed issuance product which allows you to pool your assets with others in order to earn fees from lending to borrows. Of course, you could be a borrower yourself.
FlareMutual is a decentralized mutual fund that allows users to earn fees from sharing risk, taking on a similar function as an insurance company.
FlareMine allows Bitcoin and Litecoin miners to use their mining rigs to earn non-POW assets, such as Celsius (CEL). It also gives the ability for miners to automatically convert their mined assets to F-Assets, effectively giving miners a way to earn passive FLR rewards.
We hope this gives you an idea of some of the DeFi products you can use on Flare Finance. To recap, users will be able to use FLR, F-Assets, and Flare Finance’s YFLR and YFIN in the ecosystem. There will be many ways to earn yield on Flare Finance through Liquidity Pools, Yield Farming, Lending, and Mutual Funds. Checkout Flare Finance’s WhitePaper for more details on all of the above.