However, there have been several instances of hacks on DeFi platforms with millions in TVL and in spite of being around for months. Can releasing an Experimental Finance (ExFi) platform be the solution to these recurring problems in the DeFi Space?
Flare Finance has revealed the Experimental Finance platform (ExFi) on the Songbird Network. The ExFi platform will act as a playground for the developers empowering them to test various modules and scenarios. While that may be the case, it seems unlikely that all of the products introduced on the ExFi platform will make it to the main network. Songbird is the Canary Network for flare and is expected to remain even after the launch of the main network.
The ExFi platform will aid in eliminating bugs, hacks, and any similar errors at this level and prevent them from reaching the main network. This will help in reducing the risks for the community and also help the users get acquainted with the platform. Just like Flare Network, Flare Finance will also take a dual-approach and deploy on both ExNet and MainNet.
The ExFi platform was launched on the Songbird network in three phases. The first phase was the minting phase which allowed users with $SGB to mint $CAND. The second phase was the liquidity phase where the holders of $SGB and $CAND could provide liquidity to FlareX liquidity pools. The last phase of the launch was the trading phase wherein FlareX was open for users to swap $SGB and $CAND.
Users should keep in mind that the ExFi platform is a semi-audited platform for both the developers and the community users. It enables both to test, learn, and gain experience in the decentralized finance space. Some of the risks involved with the use of ExFi include malicious hacks or denial of service, bugs, and liquidations due to high market volatility and low liquidity.
The participants of the ExFi platform will also be eligible for rewards from a reward pool of 1 million $YFLR. Yield farming participants staking in SGB and SGB/CAND farms will receive rewards from a pool of 650,000 $DFLR, while the remaining $350,000 will be allocated for the loan and stablecoins participants. All rewards are expected to be distributed over a period of 63 days.
The idea of ExFi could go a long way in helping better the adoption of DeFi among new crypto users. Flare Finance’s ExFi platform could be the start of a new strategy of launching an Experimental finance platform to eliminate bugs and hacks and then launching a battle-tested DeFi platform. Users who would like to test the ExFi platform can head over to Flare Finance Twitter for more details.