The Good Tech Companies - Flare Network Launches XRP Token Integration on Test Network

Episode Date: December 18, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/flare-network-launches-xrp-token-integration-on-test-network. FXRP, a tokenized version of XRP, has been deployed on the blockchain platform Flare's Songbird test network. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #blockchain, #dlt, #cryptocurrency, #flare-network, #flare-network-news, #flare-network-announcement, #xrp, #good-company, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. FXRP, a tokenized version of XRP, has been deployed on the blockchain platform Flare's Songbird test network. The launch comes after completing an open beta phase that processed 263,000 mints and 395,000 redemptions across 48,000 participants. The integration introduces a verification system called the "handshake" mechanism, which allows authorized agents to verify wallet addresses.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Flare Network Launches XRP Token Integration on Test Network by Ashan Pandey Blockchain platform Flare has initiated the deployment of FXRP, a tokenized version of XRP, on its Songbird test network. The launch comes after completing an open beta phase that processed 263,000 mints and 395,000 redemptions across 48,000 participants. The integration introduces a verification system called the

handshake mechanism, which allows authorized agents to verify wallet addresses involved in minting and redeeming transactions. This development represents a step toward enabling non-smart contract cryptocurrencies like XRP, Bitcoin, and Dogecoin to interact with decentralized finance, DeFi, applications. Testing on the Songbird network will continue for six weeks per asset, with several financial parameters in place. These include a $2 million issuance limit for each asset and $300,000 in loss protection provided by Flare Labs to safeguard test participants. The network will use Songbird's native token, SGB, and USDX, a stablecoin linked

to U.S. Treasury values, as collateral during this phase. To encourage participation in the testing phase, Flare has allocated $260,000 INR FLR tokens as rewards for users who engage in minting, redeeming, and trading activities. The testing environment spans multiple platforms to prevent single-point access dependencies. The F-Assets protocol, which powers this integration, employs an over-collateralization model where each bridged token maintains backing by a higher collateral value. This approach differs from traditional bridging methods that rely on custody services or multi-signature arrangements. The system includes automated liquidation protocols designed to maintain stability

and protect user assets. Development teams can access testing parameters through the Flare Developer Hub, while regular users can participate through various minting applications. This distributed access aims to reduce centralization risks during the testing phase. The technical framework behind F-Assets seeks to address a significant limitation in cryptocurrency markets, the inability of major non-smart contract cryptocurrencies to participate in DeFi operations. By creating tokenized versions of these assets, the system aims to enable their use in trading, lending, and staking activities while maintaining security through collateralization. Flare's implementation on Songbird serves as a preliminary step before potential deployment on

its main network. The test network phase focuses on identifying operational issues and optimizing system performance under various conditions. This development occurs as blockchain platforms continue to explore solutions for integrating traditional cryptocurrencies into the expanding DeFi sector. The project's technical approach to asset bridging and its focus on maintaining collateralization reflects ongoing efforts to balance accessibility with security in cross-chain operations. The platform's underlying technology incorporates decentralized oracles at the network level, supporting data handling for various blockchain operations. This infrastructure aims to facilitate the processing of price data, blockchain events, and external API information required for DeFi operations.

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