The DeFi space has grown leaps and bounds in the past year. The DeFi summer helped the space expand rapidly, but the bugs, hacks, and rug pulls still make DeFi a minefield to cross.
About a week back, a $600 million DeFi hack shook the crypto investors across the spectrum. It is anticipated that the hackers may have exploited a cryptography error of the network. While many DeFi platforms undergo security audits by third-party to ensure the safety of their networks, such incidents are far from few.
Is the creation of an Experimental Finance network an answer to the common yet serious DeFi problems?
Flare Finance’s Experimental Finance (ExFi) Platform
Flare Finance has recently announced the launch of an Experimental Finance Platform on the Songbird Network. It will launch with three products which would be FlareLoans, FlareFarm, and FlareX. Songbird Network will be the full-value experimental development network rolled out by Flare Network.
All future use cases for Flare Network can be tested on the experimental network before making it to the Main Network. The utility token of the test network will be called Songbird ($SGB). It will have a fixed supply at launch with 10% inflation per annum.
The ExFi platform by Flare Finance will enable developers to build, deploy, and test modules before making it to the main network. The ExFi platform will ensure that all the modules have the opportunity to be tested and reviewed.
Only, then will the modules be added to the Flare Finance platform. However, not all modules from ExFi will make their way to the Main Network. To ensure maximum participation on the ExFi platform, Flare Finance has announced a 1 million $YFLR reward for the participants.
It is important to note that the rewards will be distributed as $DFLR by Flare Finance. Users will then have to convert it into $YFLR upon the launch of the Main Network. 650,000 $DFLR will be rewarded among users who take part in the farming pools.
The balance of 350,000 $DFLR from the allocated rewards will be reserved for stable coin and loan participants. All rewards will be distributed over a period of 63 days to allow for consistent testing.
Replicating the Final Product
Flare Finance by launching the ExFi platform has decided to replicate the final Flare Finance platform that will be launched on the Main Network. This allows for the product to be tested in a bare bone instance ensuring that all bugs or problems are eliminated at this stage.
To make it as close to the final product as possible, Flare Finance will airdrop $SFLR to holders of $SGB on the Songbird Network. This will be similar to the $YFLR token on the Main Network. The holders of $SFLR will be able to mine $SFIN, which is akin to $YFIN on the Main Network.
Both, $SFLR and $SFIN will be capable of the same functions as $YFLR and $YFIN but on the Experimental Finance Network. It will also act as the governing body over new modules on the ExFi Platform.
Over time, Flare Finance aims to transform the ExFi network into a financial suite with endless product potential built by community developers and open-source contributors. The snapshot for airdrop will take place a month after the launch of Flare Network.
Additionally, there will be no governance portal on the ExFi platform at the time of launch, it will begin together on both the platforms a month after the launch of Flare Network.
By launching the Experimental Finance platform, Flare Finance could be paving a way for future DeFi protocols. It is ensuring that the safety of users and the robustness of the platform is of utmost importance.
Could this dual approach be the way for ensuring that users put their money in only battle-tested products?
Well, Flare Network and Flare Finance are pioneering this approach and the results generated by the ExFi platform as well as its success will certainly impact the DeFi space. Users can follow Flare Finance on Twitter for more updates about the launch of the platform.