It has become an alternative to real world banking services, at least for some of the services offered by traditional financial institutions. However, there have been several cases of hacking on DeFi platforms with millions of TVL and although it has been around for months. Can the release of an experimental finance platform (ExFi) be the solution to these recurring problems in the DeFi space?
Flash financing revealed the Experimental Funding Platform (ExFi) on the Songbird network. The ExFi platform will serve as a playground for developers, allowing them to test out various modules and scenarios. While this may be the case, it seems unlikely that all of the products introduced on the ExFi platform will make it to the mainnet. Songbird is the Canary Network for flare and should remain so even after the mainnet launches.
The ExFi platform will help eliminate bugs, hacks and all similar errors at this level and prevent them from reaching the mainnet. This will help reduce risk to the community and will also help users become familiar 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 typing phase which allowed users with $ SGB to hit $ CAND. The second phase was the liquidity phase where holders of $ SGB and $ CAND could provide liquidity to FlareX liquidity pools. The last phase of the launch was the trading phase where FlareX was open for users to trade $ SGB and $ CAND.
Users should keep in mind that the ExFi platform is a semi-audited platform for both developers and community users. It allows both to test, learn and gain experience in the decentralized financial space. Some of the risks of using ExFi include malicious hacks or denial of service, bugs, and liquidations due to high market volatility and low liquidity.
Participants of the ExFi platform will also be eligible for rewards from a YFLR $ 1 million reward pool. Yield Farming Participants who invest in SGB and SGB / CAND Farms will receive rewards from a pool of $ 650,000 DFLR, while the remaining $ 350,000 will be allocated to Loan and Stable Coin Participants. All rewards are expected to be distributed over a 63-day period.
The idea of ExFi could go a long way in improving the adoption of DeFi among new crypto users. Flare Finance’s ExFi platform could be the start of a new strategy to launch an experimental finance platform to eliminate bugs and hacks, and then launch a battle-tested DeFi platform.
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