Kinetic to Introduce Lending and Borrowing to Flare Ecosystem

Kinetic to Introduce Lending and Borrowing to Flare Ecosystem

December 14 2023
by Nick Campion
Blockchain for data, Flare, has announced a new partnership with Kinetic, a lending and borrowing platform supported by Rome Blockchain Labs.
Kinetic will offer users a seamless platform for participating in DeFi complete with the potential to earn block rewards using their supplied digital assets. This collaboration will introduce lending and borrowing capabilities essential for deepening liquidity and fostering a robust DeFi ecosystem.

Flare users providing assets to the platform can benefit from an incentivized and natural yield through liquidity provisioning. Kinetic gives borrowers access to available assets in an over-collateralized structure, with membership benefits including interest rebates and private Discord channel access.

Rome Blockchain Labs (RBL) will facilitate the Kinetic launch and produce the technical infrastructure and design. RBL has experience in the creation and deployment of multiple custom financial markets on varying blockchain networks, including Benqi on Avalanche.

The partnership will see Kinetic benefiting from the decentralized asset prices provided by Flare’s native price oracle, the Flare Time Series Oracle. This integration will allow Kinetic to acquire off-chain time series data such as cryptocurrency prices without relying on a centralized entity. It will ensure highly accurate, decentralized, and frequently updated price feeds for lending and borrowing activities, underpinning a more secure and responsive DeFi experience on the Flare network.

Kinetic will also integrate FAssets, which are being developed by Flare Labs, Flare’s sister company, enabling traditionally non-smart contract tokens like BTC, XRP, and DOGE to engage in DeFi activities. Once these assets are converted into FAssets on Flare, Kinetic’s platform will allow them to be used for earning yield within DeFi. This integration enriches Kinetic’s lending and borrowing landscape, significantly increasing the variety and liquidity of assets available, and marks a notable step in bridging traditional cryptocurrencies with advanced DeFi functionalities.

Kinetic will initially launch on Coston2, Flare’s testnet, to enable a dynamic and interactive environment for users to engage, provide feedback, and gain valuable insights.

Hugo Philion, CEO & Co-Founder of Flare, said: “Rome Blockchain Labs has an incredible pedigree within financial markets on a number of chains, and we are happy they have chosen to build in collaboration with Kinetic on Flare. This will also be a perfect demonstration of the power of the FAssets system, enabling decentralized lending and borrowing against non-smart contract assets like BTC, XRP, and DOGE.”

Jake Hunsbusher, Core Contributor at Kinetic, commented: “Traditionally, the market value of tokens used as rewards for protocol engagement faces downward pressure due to distribution and trading. The Kinetic platform counters this by enabling users to work for their tokens and, in turn, put those tokens to work for themselves. Through innovative tokenomics, we prioritize broadening user access to the protocol and facilitating yield generation, all while preserving the protocol’s long-term sustainability. Our primary aim is to break free from the typical cycle of devaluation and to spearhead a new era of financial empowerment.”

Kinetic’s commitment to user security and technological excellence is demonstrated through its strategic partnerships in the DeFi landscape. The platform is dedicated to decentralization, aiming to eliminate KYC restrictions while remaining accessible in countries experiencing regulatory uncertainty.

Kinetic’s collaboration with Rome Blockchain Labs provides the robust technological infrastructure essential for seamless operations, while Watchpug and Immunefi oversee the platform’s smart contract audits and bug bounty programs, respectively.

About Kinetic
Kinetic Market, built on the Flare Network for its innovative decentralized oracles, operates as an algorithmic non-custodial lending platform. Users transform idle assets into active strategies, unlocking accelerated financial opportunities. Much like a marble on a track influenced by gravity, setting strategies in motion accelerates financial journeys. Kinetic harnesses the robust infrastructure provided by Rome Blockchain Labs, positioning itself for collaboration with industry leaders.