The July 25th Ecosystem Call, hosted by Jonathan (Flare Community) and Hugo, was all about celebrating #FLRfiSummer. They were joined by Kenny Zhang (Ecosystem Growth Lead at LayerZero), Angus Lamps (Foundation Lead at Stargate), and Anita Ng (BD Representative at SparkDEX).
The group discussed Flare’s launch on the Stargate bridge, its LayerZero V2 integration, SparkDEX’s protocol launches, and how each development accelerates the growth of Flare’s DeFi ecosystem. Find the full recording here: https://x.com/FlareNetworks/status/1816488714161271155
Cost Efficient Data Protocols & Liquidity Incentives
Hugo started off the call by highlighting Flare’s enshrined data protocols, and how Flare’s model both enhances security and allows builders to use data across multiple networks. In contrast to using third party oracles, Flare’s unique data protocols lower costs for dapp builders using data – this is essential to creating economically viable dapps.
The Flare co-founder also discussed the recent approval of FIP.09, which will incentivize deeper liquidity in Flare’s growing DeFi ecosystem due to the 510 million FLR emissions program. The integration with Stargate and LayerZero V2 is key, as it will facilitate the inflow of stablecoins such as USDT and USDC into Flare.
Introducing SparkDEX
Anita Ng provided an overview of SparkDEX’s upcoming Automated Market Maker (AMM) and Perpetuals protocol launches on Flare, which were announced earlier this month. As a DeFi hub, SparkDEX aims to offer advanced trading tools on Flare while ensuring seamless user experiences. Ng talked about the strengths of the platform’s AMM, pointing to the protocol’s ability to deploy strategies that minimize impermanent loss, different fee tiers based on each unique liquidity pool, as well the integration of limit orders by liquidity providers.
Among highlights described were 100x leverage on their perps product as well as the future addition of forex and commodities when data feeds are available on Flare’s FTSO, bringing more sophisticated trading strategies to Flare. Ng shared that the SparkDEX team is working on AI integration that would allow users to interact with SparkDEX with simple commands.
“Blockchain technology now should be abstracted away from the user experience. In other words, people should not realize when they are using a blockchain, or which blockchain they are using.”
LayerZero V2 Integration
LayerZero’s Kenny Zhang discussed LayerZero V2’s introduction of Decentralized Verifier Networks (DVNs) and their role in enhancing both security and decentralization. DVNs allow for omnichain app deployments that can securely communicate and transfer assets between various networks. He then highlighted the importance of standard protocols for inter-blockchain communications, as it ultimately makes it easier for developers to build and deploy applications.
Flare’s Launch on the Stargate Bridge
Angus Lamps explained Stargate’s role in bridging liquidity and value across networks. The Stargate bridge, built on LayerZero V2, enables the transfer of assets like wETH and stablecoins (ie: USDT and USDC) with zero fees and no slippage. The transfer of these assets leverages LayerZero’s tech for security. Stargate runs its own DVN to ensure transaction integrity.
When asked if there were plans to expand the range of supported assets, Lamps stated, “The DAO and the community is always looking to ensure that Stargate is able to support users who are looking to bridge.” According to Lamps, the three aforementioned assets currently account for 90-95% of the bridging volume they see in DeFi, and that though Stargate supported a few other assets in the past, they didn’t see much volume. Lamps did add that Stargate was open to expanding based on user demand.
“The goal isn’t just to be a bridge – the goal is to be a bridge for all assets that are available.”
FAssets Update
Hugo also updated listeners on the testing of FAssets on Coston, Flare’s testnet, and the team’s continuing efforts to ensure the system is fully refined before deployment. Hugo then addressed the challenge the Flare team has faced with some community members hoarding FTestXRP. This has led to some agents running out of collateral faster than Flare can add to the system, preventing minting and denying users the chance to test the system. In response, a potential measure is to reduce beta incentives for those hoarding too much FTestXRP.
Hackathon
The recent Flare hackathon was a great success, and Hugo commended the developers who participated and built truly innovative, cross-chain protocols using Flare’s price oracle. The Flare co-founder also shared some insights gained from the experience, sharing that it was a great opportunity to see these developers take full advantage of Flare’s versatility.
Hugo then re-emphasized the importance of low cost of data. “One of the things which I think has been one of the biggest barriers to the advancement of our entire industry is that we really have very little data available on-chain, which means it’s really, really hard to experiment, really hard to see what works, what doesn’t work.”
Hugo then closed with this sentiment. “What we really see when we do these hackathons is that people ideate things really quickly, test them out, see that Flare is available for that and very, very useful.”
What’s Next
The Flare team is gearing up for Korea Blockchain Week and Token 2049, where they’ll showcase the latest upgrades and connect with the blockchain community. The team is excited about the upcoming FTSO and Data Connector upgrades, and how they will enhance the developer experience, enabling more dynamic dapps to be built.