Flare Finance has announced a partnership with the XinFin network which could be one of the most important events in the crypto space in 2021. While there has been a lot of talk about interoperability and connecting communities, Flare Finance is well on its way to becoming a hub for communities. Through this partnership, Flare Finance and XinFin Network will have a two-way bridge that will allow assets from one chain to be encapsulated and used in the other. Therefore, the XDC will basically be wrapped and linked from the XinFin network to the Flare Network. Similarly, the Flare Network tokens can be minted to the XinFin Network to bring F assets into the XinFin Network.
Flare Finance has also announced that it will support the XinFin Network’s native token, XDC, across all products. This means that XDC holders can mine YFIN by participating in Flare Farm or XDC owners can use their XDC as collateral via FlareLoans to get loans or borrow stable coins by accumulating XDC while earning variable APY in YFIN on borrowing as well as lending. Flare Finance contains a total of 6 products that can be studied in detail from Flare Finance website. It is important to note that Flare Finance is the first DeFi network to be built on the Flare Network. However, even before its release, many are already anticipating that Flare Finance will become the best DeFi network.
It is essential to understand that Flare Finance is a separate entity from the Flare Network and is the platform on which it is built. The Flare Network is a distributed network running the Avalanche Consensus Protocol adapted to the Byzantine Federal Convention and making use of the Ethereum Virtual Machine. It aims to unlock the value of assets locked on chains that do not contain native smart contracts. This will enable additional benefit of these tokens while the network token will act as collateral for the untrusted asset issuance. XRP, XLM, Doge and LTC will be the F assets at the launch of the network. Once the network is up and running, other assets can be added based on the vote. Algorand and XDC are some of the tokens that are expected to apply for integration with Flare.
XinFin . network
On the other hand, the XinFin network is a hybrid blockchain ready for enterprises to trade and finance. It is widely considered as an alternative to Ethereum thanks to its capacity of 2000 TPS with low fees. The average time to complete a transaction on the XinFin Network’s network protocol, XDPoS, is just two seconds. The XinFin network is also among the most energy efficient, consuming only about 0.0000074 TWh according to the data available on XinFin . website. XinFin is also believed to work with governments to reduce the gap in global infrastructure. Private chain generation, EVM paralleling, and hardware integration are expected to reach the XinFin network in the future.
Flare Finance has already announced a range of assets including FLR, XRP, LTC, XLM, DOGE, ALGO, ADA, SHIB, SANSHU, TEL, CEL, BNB, CAKE and now XDC will be used in the Flare Finance ecosystem. More assets are expected to be added by voting once the network is up and running. With such a comprehensive ecosystem that includes assets from all chains, Flare Finance connects not only these chains but communities and ecosystems as well.
For DeFi to become a viable alternative to banks for the general public, these broader mergers will be vital. It appears that Flare Finance has already taken the first step in the right direction and positioned itself as a leader in the DeFi space. The race to be the best DeFi platform has only heated up with the advancements made by Flare Finance. The game is just getting started, so pack your bags and get ready to become a part of the cutting edge DeFi platforms.