Flare Finance has announced a partnership with XinFin Network which could be one of the most significant events of crypto space in 2021. While a lot has been spoken about interoperability and bridging communities, Flare Finance is on the way to becoming the epicentre of communities. With this partnership, Flare Finance and XinFin Network would have a bi-directional bridge allowing assets from either chain to be wrapped and utilized onto the other chain. So, essentially XDC would be wrapped and bridged from XinFin Network to Flare Network. Similarly, Flare Network tokens could be minted to XinFin Network bringing F-Assets to XinFin Network.
The True Interoperability
Flare Finance has also announced that it will support XinFin Network’s native token, XDC across all the products. This would mean that XDC holders could mine YFIN by participating in the Flare Farm or XDC holders could use their XDC as collateral via FlareLoans to take out loans or borrow stable coins by staking XDC while earning a variable APY in YFIN on borrowing as well as lending. Flare Finance has a total of 6 products which can be studied in detail from the Flare Finance website. It is important to note that Flare Finance is the first DeFi network to be built on Flare Network. However, even before its release, many are already anticipating Flare Finance to become the best DeFi Network.
It is essential to understand that Flare Finance is a separate entity from the Flare Network and is a platform built on it. The Flare Network is a distributed network running the Avalanche consensus protocol adapted to the Federated Byzantine Agreement and leveraging the Ethereum Virtual Machine. It aims at unlocking the value of locked assets on chains that do not have native smart contracts. This will enable additional utility for these tokens while the network’s native token will function as collateral for the trustless issuance of assets. XRP, XLM, Doge, and LTC will be the F-assets at the launch of the…