Why Flare Limits FAsset Minting During Songbird Testing Phase

• Hugo Philion explains FAsset test limitations due to collateral risks capped at $300k for code-related exploits.
• FAsset scaling is restricted to ensure security and effectiveness before transitioning to Flare’s main network.

The recent updates regarding Flare’s FAsset testing on Songbird have received a lot of attention, especially given its design and limitations. Co-founder of Flare Hugo Philion responded on X to help to understand the present status of the testing phase.

With a $2 million per asset threshold and limitations linked to the accessible agent and pool collateral, he underlined that the FAsset test is purposefully limited.

The FAsset test on Songbird has been designed to be limited in nature. The amount of FAsset that can be issued is limited both by a $2M per asset cap and the amount of agent and pool collateral.

As we have seen the system is fully minted most of the time. So why aren’t agents…

— Hugo Philion ☀️ (@HugoPhilion) December 21, 2024

Flare Labs Limits Collateral to Ensure Security During Testing Phase 

Philion answered a fundamental concern from the community: why aren’t agents putting more collateral to boost minting near the cap? The small risk coverage given during the testing stage holds the key. Flare Labs is covering the risk of possible exploits resulting from code problems, as Philion clarified, just up to $300,000.

Although agents are theoretically permitted to offer additional collateral, they remain wary as any problems above the $300,000 limit would not be covered.

This restriction will stay in effect until the tests finish and FAssets completely switch to Flare’s main network. For this phase, Philion pointed out that expanding the test system’s scale provides no extra benefit.

This careful technique emphasizes Flare’s dedication to guaranteeing security and durability prior to operation expansion. It also emphasizes the calculated actions Flare is doing to foster trust inside its habitat. As reported by Crypto News Flash (CNF), Flare lately teamed with ChainPatrol to improve Web3 security.

This partnership seeks to address common risks, including phishing, social engineering, and impersonation, thereby safeguarding Flare’s users on Discord, Slack, and Telegram bots. The real-time threat monitoring offered by ChainPatrol adds a vital layer of protection, therefore supporting Flare’s commitment to user safety.

Meanwhile, Flare’s native token, FLR, has suffered recent market swings. FLR is swapped hands at about $0.02598 at the time of writing; it has dropped 13.04% over the last 7 days and 3.25% over the last 24 hours.