Flare Network is a smart contracts platform that aims to increase the usability of various digital assets by using these assets in its smart contracts. It required a token for the operation of the network, following which, the token Spark was introduced.
In October, it announced the launch of the test phase for the first DeFi protocol based on its network. It launched a test on the Costco network. Flare Finance is a DeFi protocol that will be deployed on the network and will see a launch of “6 products in one” for the user. It is supported by Ripple’s investment arm, Xpring, and is a utility fork based on XRP.ADVERTISEMENT
A utility fork will mean that Flare’s native token, Spark, will be generated by a fork of XRP. Thus, the owners of XRP will receive the Spark token in a 1:1 ratio, which by extension means that there could be 100 billion Spark tokens created. However, for this to take place, the exchanges will have to extend support to the airdrop for XRP users to acquire Spark token during the airdrop. The network has thus asked XRP holders to prepare for the snapshot taking place on 12 December by moving their XRP to approved wallets or exchanges.
With XRP’s price acting pretty stable, the Spark token and the Flare Network may open gateways to the DeFi ecosystem with smart contract integration. This would also enable more use cases for XRP holders, more than just depending on the on-demand liquidity use cases.
According to Flare Network team, Flare’s efforts to bridge smart contracts and XRP will open the door to a multi-billion-dollar market.