Flare Finance — ExFi “Phase 1” Begins
We are pleased to announce the launch of Experimental Finance “Phase 1”. This will include the launch of FlareLoans, the decentralized USD-pegged stable coin minting protocol that will allow holders of $SGB to participate in minting the on-chain stable coin, Canary Dollar ($CAND).
ExFi will roll out in 3 phases:
- Phase 1 — “Minting Phase” — This phase will enable the users of the Songbird Network to begin bootstrapping the ecosystem with liquidity by collateralizing their $SGB to mint $CAND. At this time, a minimum of $1800 worth of $SGB is needed to mint any $CAND. We do NOT recommend turning all of your $SGB into $CAND as you will need to have spare $SGB to participate in the $SGB/$CAND Liquidity Pools. Additionally, ensure a safe collateralization ratio to avoid liquidation during price swings. If minting $CAND is out of the question right now, then you can always proceed to purchase $CAND on FlareX when it is launched. Phase 1 will last for 24 hours and the goal will be to mint $5,000,000 $CAND.
- Phase 2 — “Liquidity Phase” — This phase will enable the new holders of $CAND and $SGB to begin bootstrapping FlareX Liquidity Pools with liquidity to help mitigate the risk of volatile market swings on FlareX. Additionally, FlareFarms will open to incentivize holders to participate in the Liquidity Pools to begin generating yield in the form of $DFLR. Phase 2 will last for 24 more hours and the goal will be to provide $10,000,000 in Liquidity to the SGB/CAND pair before trading begins.
- Phase 3 — “Trading Phase” — This phase will enable the users of the Flare Network to now easily swap between $CAND and $SGB at any time on FlareX and lay a strong base for more trading pairs to be listed on chain starting with FAssets after they launch. New pairs will slowly be added as they are made available. $DFLR will not be made available to trade. Trading of $EXFI will begin in the near future post-snapshot.
Please be aware, Flare Finance “ExFi” is a semi-audit experimental finance platform dedicated to giving both the community and developers a place to test, learn, and gain valuable experience with decentralized finance in a sandbox style “anything goes” manner. There are risks associated with using ExFi and some of these risks include:
- Malicious actions such as hacks or denial of service.
- Bugs and undiscovered edge cases that could result in some UX/UI issues.
- Liquidations due to low liquidity and high market volatility.
We will do everything in our power to mitigate the above potential risks, but of course, there is nothing that is guaranteed. Please be aware to only risk what you are willing to lose and to do any and all of your own research when it comes to learning ExFi, DeFi, and Flare Finance.
Details on the Open Beta, including prizes will be released in the coming days.
If you’re too risk averse to mint CAND, please consider delegating to DeFi Oracles Signal Provider to increase on-chain liquidity at https://defioracles.net/!
Head on over to https://xfl.flr.finance/ to begin now!