Flare is developing a new DeFi Hub that provides new opportunities for developers and users alike.
In leveraging its enshrined oracles and existing robust infrastructure, Flare empowers a diverse range of dApps to explore innovative use cases that accelerate the onboarding of new users. A closer look at the projects that are currently live on Flare in which you can start participating.
Why Choose Flare for DeFi?
Oracles are essential for onchain finance as they provide the external data necessary for DeFi functions. Current third-party oracle services depend on off-chain networks of nodes to deliver data, often using a limited number of independent data providers for specific price feeds. They are vulnerable to manipulation due to this limited pool of data providers, which forces developers to take on the additional role of risk managers when using new data feeds.
As DeFi expands, the need for secure, cost-effective, and scalable oracle systems grows. Flare addresses these issues with its enshrined oracles.
Additionally, Flare’s ecosystem is rapidly expanding, supported by a network of over 150 strategic partners, including major infrastructure providers like Google Cloud, Figment, and Ankr. Recent integrations from LayerZero V2, Stargate, and Polyhedra have introduced additional secure bridging solutions, enabling assets like USDT, USDC, and ETH to flow seamlessly into Flare.
What are some key DeFi projects on Flare?
Many innovative DeFi projects are already utilizing Flare’s unique capabilities to provide value to users. Let’s take a closer look at some of these projects.
Sparkdex
Sparkdex is a Uniswap V3-style decentralized exchange (DEX) with concentrated liquidity pools that include stablecoins, wFLR, and sFLR. It leverages the faster and more reliable data feeds of the FTSOv2 in order to power advanced financial instruments, dynamically set user funding rates, and settle agreements efficiently.
Kinetic
Built by Rome Blockchain Labs, the same team that created Benqi, Kinetic is a borrow & lend protocol that allows users to leverage their supplied assets (including FAssets when live) into different financial strategies. With FTSOv2, Kinetic now benefits from more up-to-date and accurate price feeds, which enables more efficient loan settlements. FTSOv2 also enables Kinetic to liquidate undercollateralized positions accurately and help protect against insolvency.
Enosys
As a Uniswap V3-style DEX with concentrated liquidity pools, Enosys introduced concentrated liquidity and increased capital efficiency to Flare and Songbird, Flare’s canary network. With the upgrade from their V2 DEX to V3 complete, Enosys gives more precise control to liquidity providers, who are able to allocate capital within specific price ranges and set tighter parameters.
Sceptre
Sceptre is a liquid staking protocol that empowers users to maximize their FLR yield by using their tokens in DeFi platforms, while simultaneously continuing to earn native Flare rewards and monthly FlareDrops. Sceptre enables this with sFLR, the first Liquid Staking Token (LST) on Flare. Currently, sFLR can be used for participation in lending protocols and DEX liquidity pools, with more uses in the pipeline.
Raindex
Raindex is an intents-like DEX that uses the FTSO for advanced trading operations that mimic those found on centralized exchanges. As the platform supports automated trading strategies, it makes sophisticated trading strategies accessible to a broader range of users.
XDFI
XDFI is a compliant, daily futures trading platform where users can lock FLR (and sFLR soon) as trading collateral – then trade BTC, ETH, XRP, and DOGE. Because XDFI is the first KYC-compliant (Know your customer) futures platform on Flare, it meets the needs of any institutional users who require regulated trading environments.
As a futures platform, XDFI requires the real-time pricing data provided by the FTSO, in order to settle futures contracts and efficiently manage risk. XDFI is currently live on Coston, with mainnet launch coming soon.
How is Flare supporting the development and growth of these projects?
The FTSO provides the necessary decentralized pricing data for projects built on Flare. Whether for DEX liquidity management (Enosys), futures pricing data (XDFI), or automated trading strategies (Raindex), the FTSO is a core component in ensuring these protocols have access to high-quality data.
Additionally, the Flare Emission Committee is actively supporting the development of DeFi projects on Flare through its rFLR allocations, which incentivizes the use of these dapps. Learn more about rFLR emissions in our Emissions article.
How will FAssets tie into the larger DeFi ecosystem?
Once FAssets launches on Flare mainnet, each DeFi protocol on Flare – current and future projects alike – can benefit from the increased liquidity and cross-chain interoperability that FAssets will provide. These dynamic protocols are setting the foundation for Flare’s DeFi ecosystem and also serve as previews to the wide array of services and innovations that can be built on Flare.
What’s next for Flare DeFi?
Flare is exploring offchain verifiable compute to enable innovative applications, such as prediction markets, which can leverage Trusted Execution Environments to enhance data security and streamline both data transfer and logic execution onchain and offchain for better customer-facing applications.
The future of Flare DeFi looks promising, with a strong emphasis on security, user experience, liquidity, and innovative applications aimed at attracting a broader audience to onchain finance.