Thursday, May 23, 2024

Quick Take

Kinetic and Flare’s strategic partnership aims to boost DeFi liquidity with innovative lending and borrowing features. Flare’s decentralized price oracle and integration of traditionally non-smart contract tokens promise to enhance the DeFi landscape. This collaboration signals a promising step toward a more accessible and sustainable decentralized financial ecosystem.

Flare Partners with Kinetic to Introduce Lending and Borrowing to Flare Ecosystem

In a strategic move aimed at deepening liquidity and fostering a more robust decentralized finance (DeFi) ecosystem, algorithmic non-custodial lending and borrowing platform Kinetic, supported by Rome Blockchain Labs (RBL), has announced a strategic partnership with Flare, the blockchain for data. The collaboration, unveiled on Thursday, promises to bring exciting opportunities for users in the world of decentralized finance.

Kinetic’s platform will offer users a seamless experience for participating in DeFi, complete with the potential to earn block rewards using their supplied digital assets. This partnership marks a significant step toward strengthening lending and borrowing capabilities within the DeFi space.

One of the key features of this collaboration is the incentive structure it introduces. Flare users providing assets to the platform can benefit from an incentivized and natural yield through liquidity provisioning. For borrowers, Kinetic will provide access to available assets in an over-collateralized structure, offering membership benefits such as interest rebates and access to a private Discord channel.

Rome Blockchain Labs, with its expertise in creating and deploying custom financial markets on various blockchain networks, including Benqi on Avalanche, will play a crucial role in facilitating Kinetic’s launch. This partnership is expected to provide the technical infrastructure and design necessary to ensure a smooth entry into the DeFi landscape.

One of the standout features of this partnership is Kinetic’s integration with Flare’s native price oracle, the Flare Time Series Oracle. This integration will enable Kinetic to access off-chain time series data, including cryptocurrency prices, without relying on centralized entities. The result is highly accurate, decentralized, and frequently updated price feeds for lending and borrowing activities, ensuring a more secure and responsive DeFi experience on the Flare network.

Furthermore, Kinetic will integrate FAssets, developed by Flare Labs, Flare’s sister company. This integration will allow traditionally non-smart contract tokens like BTC, XRP, and DOGE to engage in DeFi activities. Once these assets are converted into FAssets on Flare, Kinetic’s platform will enable users to earn yield within the DeFi ecosystem, significantly enhancing the variety and liquidity of assets available.

Hugo Philion, CEO & Co-Founder of Flare, commented on the partnership: “Rome Blockchain Labs has an incredible pedigree within financial markets on a number of chains, and we are happy they have chosen to build in collaboration with Kinetic on Flare. This will also be a perfect demonstration of the power of the FAssets system, enabling decentralized lending and borrowing against non-smart contract assets like BTC, XRP, and DOGE.”

Jake Hunsbusher, Core Contributor at Kinetic, highlighted the platform’s innovative approach, saying, “Our primary aim is to break free from the typical cycle of devaluation and to spearhead a new era of financial empowerment.” He emphasized the importance of Kinetic’s commitment to user security and technological excellence.

Kinetic’s dedication to decentralization is particularly noteworthy, as it aims to eliminate KYC restrictions while remaining accessible in countries experiencing regulatory uncertainty. The platform has also formed strategic partnerships to ensure its security and technological excellence, with Watchpug and Immunefi overseeing smart contract audits and bug bounty programs.

Read Also: Flare Empowers Decentralized Data Access with Key Infrastructure Providers Onboard

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