Flare Finance (DLFR), which will be the first DeFi product available on much-anticipated blockchain Flare (FLR), shared its plans to roll out the "ExFi" protocol on Songbird. Why did they decide to do this?
FlareX, FlareFarm and FlareLoans will be tested with SGB tokens
According to the official announcement shared in the blog post by Flare Finance, its engineering team will release the Experimental Finance (or ExFi) environment on Songbird, a novel "canary network" of Flare.
Three core elements of Flare Finance—FlareX exchange, FlareFarm yield farming tool and FlareLoans lending/borrowing instruments—will be the first to go live on Songbird-based ExFi.
Holders of SGB, a native utility and governance asset of Songbird, will be invited to create Canary Dollars (CAND) via the FlareLoans platform. CAND will act similarly to YUSD in Flare Finance's mainnet.
Holders of SGB will be able to participate in "early bird" staking on FlareFarm to earn a portion of 1,000,000 DFLR allocated for the ExFi staking initiative.
During the initial stages of testing, 90 percent of generated fees will be distributed between liquidity providers, while 8 percent will be allocated to the teams and two percent to reserves.
Flare Finance will experiment with sandbox token design
To ensure a risk-free experience for all testers, a batch of YFLR tokens will be unlocked for the participants of the DAO Offering Claim Pool.
Also, upon the launch of Flare Network in mainnet, other Flare Finance products—FlareMine, FlareMutual, FlareWrap, Governance and APY Cloud—will be added to Songbird's stack of applications.
As covered by U.Today previously, Songbird is a "canary network" of Flare similar to Polkadot's Kusama. It is designed to be a technical framework for experiments with Flare with a limited supply of testnet tokens.