Flare's Strategic Alliance with Kinetic Unleashes Lending & Borrowing in Flare Ecosystem

By Lidia Yadlos

Flare, the blockchain dedicated to data, has entered into a transformative partnership with Kinetic, a lending and borrowing platform backed by Rome Blockchain Labs. This collaboration introduces vital lending and borrowing features, essential for fortifying liquidity and nurturing a resilient DeFi ecosystem within the Flare network.

Users contributing assets to Flare's platform stand to gain incentivized yields through liquidity provisioning. Kinetic, empowered by Rome Blockchain Labs, provides borrowers access to available assets in a secure over-collateralized structure, offering benefits like interest rebates and exclusive Discord channel access to its members.

Rome Blockchain Labs, a seasoned player in crafting and deploying custom financial markets across various blockchain networks, including the successful Benqi on Avalanche, will oversee the launch of Kinetic. The partnership ensures the infusion of decentralized asset prices via Flare's native price oracle, the Flare Time Series Oracle. 

"This integration guarantees precise, decentralized, and regularly updated price feeds, enhancing security and responsiveness in DeFi activities on the Flare network." 

Flare Network

Kinetic's integration with FAssets, developed by Flare Labs, expands the platform's horizon by enabling non-smart contract tokens like BTC, XRP, and DOGE to participate in DeFi activities. Once converted into FAssets on Flare, Kinetic's platform facilitates the utilization of these assets for earning yields within DeFi. This integration significantly diversifies and amplifies the asset pool, bridging traditional cryptocurrencies with advanced DeFi functionalities.

The initial launch of Kinetic will take place on Coston2, Flare's testnet, providing users with an interactive environment to engage, provide feedback, and gain insights.

Hugo Philion, CEO & Co-Founder of Flare, expressed excitement about the collaboration, stating, "Lending and borrowing is a critical piece of any DeFi ecosystem, so we are very happy that we have a company of the caliber of Rome Blockchain Labs and Kinetic building the first such platform on Flare. 

I am particularly looking forward to what this means to holders of non-smart contract assets like BTC, XRP & DOGE. By bringing them onto Flare in the form of FAssets, it will be possible to use them in smart contracts, such as on Kinetic, enabling borrowing, lending, and earning yield with these normally underutilized assets," added Hugo.

Jake Hunsbusher, Core Contributor at Kinetic, emphasized the platform's mission to break free from the typical devaluation cycle, stating, “Launching the first lending protocol on Flare positions us to usher in a new wave of financial autonomy, challenging the status quo of traditional lending. Lending institutions have long imposed barriers for users, acting as gatekeepers to financial opportunities.

This is a major step forward for the growth and maturation of the Flare ecosystem. Kinetic's arrival promises to infuse vitality, foster heightened activity, and bolster liquidity within the network, offering users an array of novel opportunities to craft financial strategies previously beyond their reach. 

By harnessing the power of Flare’s decentralized oracles and FAssets, we aim to provide a precision-driven, secure, and agile experience for DeFi users."

"We are closely aligned with Flare’s mission of providing real-world utility to propel the broader blockchain industry forward.”

Jake Hunsbusher, Core Contributor at Kinetic

The collaboration aligns with Kinetic's commitment to decentralization, aiming to eliminate KYC restrictions while remaining accessible in countries facing regulatory uncertainties. Strategic partnerships with Watchpug and Immunefi ensure smart contract audits and bug bounty programs for enhanced security.

For more details about the Flare and Kinetic partnership, visit Flare's website and Kinetic's website for the latest updates and developments.

Published on Flare

Flare's Strategic Alliance with Kinetic Unleashes Lending & Borrowing in Flare Ecosystem