Flare, a blockchain for data with embedded decentralized oracles, has announced its partnership with Kinetic Market, a Flare-based algorithmic non-custodial lending platform. The strategic collaboration will see Kinetic, supported by Rome Blockchain Labs (RBL), introduce its novel borrowing and lending technology to Flare’s ecosystem. This will provide users on Flare with a seamless platform for participating in DeFi complete with the potential to earn block rewards for their staked assets.
Kinetic will initially launch on Coston2, Flare’s testnet, to enable a dynamic and interactive environment for users to engage, provide feedback, and gain valuable insights.
“Traditionally, the market value of tokens used as rewards for protocol engagement faces downward pressure due to distribution and trading. The Kinetic platform counters this by enabling users to work for their tokens and, in turn, put those tokens to work for themselves,” Jake Hunsbusher, Core Contributor at Kinetic commented. “Through innovative tokenomics, we prioritise broadening user access to the protocol and facilitating yield generation, all while preserving the protocol’s long-term sustainability.”
This will be a two-way beneficial model for both parties, whereby Kinetic will introduce lending and borrowing capabilities to Flare, deepening liquidity and fostering a robust DeFi ecosystem. On the flip side, Kinetic will benefit from Flare’s native price oracle, the Flare Time Series Oracle (FTSO) and integrating the recently launched FAssets, allowing Kinetic users to utilize traditionally non-smart contract tokens like BTC, XRP, and DOGE to engage in DeFi activities.
Lenders on Flare can benefit from the platform by gaining incentivized and natural yield through providing liquidity. Kinetic also offers borrowers access to liquidity to available assets in an over-collateralized structure. Borrowers and lenders will also get membership benefits including interest rebates and access to private Discord channels.
As alluded to, the partnership will also benefit Kinetic users. Primarily, Kinetic will benefit from the decentralized asset prices provided by Flare’s native price oracle, the Flare Time Series Oracle (FTSO). By integrating Flare’s FTSO, Kinetic will be able to acquire off-chain time series data in a decentralized fashion. Kinetic will leverage this data and price feeds for their borrowing and lending activities, providing a more secure, efficient and responsive experience for DeFi users.
Additionally, Kinetic will also integrate the recently launched FAssets, a product of Flare’s major developer Flare Labs. FAssets is a platform that enables traditionally non-smart contract tokens such as BTC, XRP and DOGE to engage in DeFi activities. Once these assets are converted into FAssets on Flare, Kinetic’s platform will allow them to be used for earning yield within DeFi. This is expected to grow Kinetic’s borrowing and lending services, expanding the number of tokens available and liquidity on the platform.
“Rome Blockchain Labs has an incredible pedigree within financial markets on several chains, and we are happy they have chosen to build in collaboration with Kinetic on Flare,” said Hugo Philion, CEO and co-founder of 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.”
Supported by Rome Blockchain Labs, Kinetic has grown into a fully-fledged blockchain solutions company with a focus on security and extensive technological development. The latest partnership with Flare is part of a wide web of strategic partnerships in the DeFi landscape. A clear goal of decentralization on the platform opens up DeFi, eliminating the barrier of KYC restrictions, and allowing users to access DeFi in countries experiencing regulatory uncertainty.
The partnership with RBL provides Kinetic with advanced technology infrastructure and design. RBL has experience in the creation and deployment of multiple custom financial markets on varying blockchain networks, including Benqi on Avalanche. ImmuneFi and Watchpug provide advisory and audit services for the decentralized lending platform.