Flare, a public chain, launches FAssets: a one-click conversion of BTC, DOGE, etc. into ERC-20 Tokens

CoinCircle(120BTC.cOM) news: Did you know? In the cryptocurrency market, the market value of 'non-smart contract Tokens' accounts for as much as 70%, such as Bitcoin, XRP, and DOGE, but due to the lack of smart contract functionality, although they have a huge market value, their applications on the blockchain are limited and they hardly promote the development of on-chain economy. In response to this challenge, Layer1 public chain Flare has proposed a solution.

Flare claims itself as a 'data blockchain' that provides a secure and decentralized way for users and developers to access high-integrity data from other blockchains and networks. Its recently launched new product - 'FAssets' - is designed to address the limitations of these token applications.

What is FAssets?

FAssets is a derivative product launched by Flare for non-smart contract Tokens, which is currently in the testing phase, supporting Bitcoin, XRP, and DOGE. Users can send assets to the custody collateral agent and, after verification and confirmation, mint the corresponding Flare version of the asset on its network, such as FBTC, FXRP, FDOGE. These assets are called FAssets and adopt the ERC-20 standard.

These tokens can later participate in DeFi applications in the Flare ecosystem, such as borrowing and lending, providing liquidity, etc., and can also be cross-chain transferred to other blockchains. This unlocks the use of non-smart contract tokens and provides users with the opportunity to earn additional income while holding assets.

![Diagram of Casting "Non-Smart Contract Tokens" into FAssets](https://s2.51bqz.com/d/file/defi/5bd6df3a0e2a94e987f9198e496bef60.jpg "Diagram of Casting "Non-Smart Contract Tokens" into FAssets")

Mint 'Non-Smart Contract Token' as a FAssets illustration

According to DeFiLlama data, the current TVL of Flare's DeFi ecosystem is $32.55 million. Leading protocols include lending protocol Kinetic, decentralized exchange SparkDEX, etc.

The value of each FAsset is supported by multiple collateral, including a hybrid collateral held by proxies and a community fund pool. The collateral is over-collateralized and comes in three types: underlying assets, stablecoins or ETH collateral, and the Flare native Token FLR (when on the Songbird testnet, the collateral asset is its native Token SGB). This information can be found in the official FAssets dashboard (Beta), which also includes other information such as the number of lots available for minting each asset, minting amount, and total number of FAssets holders.

During the public beta phase, there have been more than 263,000 mintings, 395,000 redemptions, and 700,000 transactions, attracting over 48,000 participants, fully demonstrating the strong demand and robustness of FAssets system.

Flare built-in oracle advantages

In terms of implementation, the official documentation states that the operation of FAssets is based on two built-in oracles - Flare Data Connector (FDC) and Flare Time Series Oracle (FTSO).

• FTSO: Provides decentralized price data for up to 1000 types of Tokens, updated once per block (approximately every 1.8 seconds)
• FDC: Can provide reliable and secure data from the blockchain and Web2 API. In the implementation of FAssets, it is responsible for verifying whether the operations on other chains have been completed, and is expected to launch the mainnet in June next year.

These oracles are different from traditional third-party oracles and are directly built into the Flare mainnet. The official statement states that this brings the following advantages:

• Security: The oracle system shares the same security model with the blockchain, ensuring decentralized data layer and resistance to manipulation. This reduces external risks and strengthens overall trust in data sources.
• Speed: The operation speed of the built-in oracle is synchronized with the blockchain and updated every 1.8 seconds. This almost real-time data is crucial for time-sensitive DeFi applications and cross-chain interactions.
• Free data access: Traditional oracles usually charge for data access, while Flare's built-in oracle provides data for free. By increasing the usage of data through dApps, the network can benefit from the generated transaction fees, further supporting network operation.
• Flexibility in design: Embedding the oracle directly into the blockchain unlocks more design flexibility. Flare can optimize the data processing efficiency of the chain and reduce costs. For example, Flare can provide gas rebates to users submitting prices during high traffic periods, balancing network load and reducing overall costs.

Flare launches an airdrop to reward participating users

For users participating in the FAssets test, the official also launched a traceability airdrop activity as a reward. As long as users actively participate in the public tests of the Coston and Songbird testnets, conduct transactions such as staking, redemption, adding/removing collateral, and have records of delegating or staking FLR/SGB (or directly connected to addresses with such records), they can receive airdrops when FAssets is officially launched on the mainnet. The specific details of the reward are:

• Total allocation: rFLR worth $400,000
• Maximum number of rewarded users: 10,000 most active users
• Graded airdrop distribution: ranging from $10 to $1,000

FLR surged 36% in a single month

As Flare is committed to awakening the market value of non-smart contract tokens, its token has performed very strongly. According to CoinGecko data, FLR has risen by 36% in the past month, with a current price of $0.02747 and a market cap of $1.51 billion, making it the 89th largest project by market cap.

In addition, its testnet Songbird native Token SGB has also performed well, with a 42.8% increase in the past month, and the price is currently at 0.0117 US dollars.

However, the competition is also intensifying. The public chain Ripple (Ripple) is expected to introduce native smart contract functionality on the mainnet XRPL next year, and launch the XRPLEVM sidechain, bringing DeFi and RWA application scenarios to XRP. At the same time, there are numerous income solutions for BTC, such as Babylon's staking infrastructure, the Lombard protocol based on Babylon, and projects like Solv Protocol which introduces wrapped Bitcoin.

In such a fierce competition, it remains to be seen whether Flare can stand out. However, Flare's FAssets provides a triple win solution, aiming to connect the liquid assets of BTC, XRP, and DOGE to Flare, realizing its vision of becoming the ultimate liquidity hub.