Flare Labs launches test version of FAssets on Coston network

On 28 November 2023, blockchain research and development company Flare Labs launched a test version of the FAssets system on Flare’s Coston testnet. 

The FAssets system enables non-smart contract tokens such as Bitcoin (BTC), (XRP), Dogecoin (DOGE) and others to be used trustlessly with smart contracts on Flare, as per the latest information shared with Finbold.

By minting these tokens into FAssets, it will be possible to stake them in exchange for yield or rewards in decentralized applications on the Flare network, and once the FAssets are on Flare, tokens can also be bridged to other networks.

“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. FAssets enable these legacy assets to be represented on a smart contract chain without requiring a centralized third party,” said Hugo Philion, CEO of Flare Labs. 

He added:

“For developers, it will be a new and trustless means to access new potential users and a large amount of currently untapped value.”

Mainnet on the way

While an initial private Beta of the FAssets system will be conducted on Flare’s Coston testnet, a subsequent implementation will follow on the Songbird canary network before FAssets are launched on the Flare mainnet. 

Flare Labs and initial partners are adopting all required roles within the current system, providing the necessary infrastructure during the Beta. 

However, the test assets employed during the test period will allow the simulation of market volatility to evaluate the system’s robustness under stress.

As the Beta test progresses, external participants will be able to join.

Once FAssets are live on Flare mainnet, in addition to earning DeFi yields, users and dapps will be able to earn FLR tokens from the cross-chain incentive pool as a reward for bringing sustainable value to Flare.