Flare Labs Limits Collateral to Ensure Security During Testing Phase

The recent updates regarding Flare’s FAsset testing on Songbird have received a lot of attention, especially given its design and limitations.

Recent updates on Flare’s FAsset testing on Songbird have garnered attention due to its design and limitations. To shed light on the current status of the testing phase, X reached out to Hugo Philion, co-founder of Flare.

With a $2 million per asset threshold and limitations linked to the accessible agent and pool collateral, the FAsset test is purposefully limited, as highlighted by Philion.

The FAsset test on Songbird is designed to be limited in nature. The total amount of FAsset that can be issued is limited both by a $2M per asset cap and the amount of agent and pool collateral.

As we have seen the system is fully minted most of the time. So why aren’t agents…

— Hugo Philion ☀️ (@HugoPhilion) December 21, 2024

To a key question from the community on why aren’t agents putting more collateral to boost minting near the cap, the limited risk coverage during the testing stage holds the answer. As clarified by Philion, any exploits due to code issues are being covered by Flare Labs, up to $300,000 only.

While agents are theoretically permitted to offer additional collateral, they remain wary as any problems above the $300,000 limit would not be covered.

This restriction will stay in effect until the tests finish and FAssets completely switch to Flare’s main network. For this phase, expanding the scale of the test system provides no extra benefit, as highlighted by Philion.

This cautious approach underscores Flare’s dedication to ensuring security and durability before expanding operations. It also highlights the measured steps being taken by Flare to foster trust within its ecosystem.

As reported by Crypto News Flash (CNF), Flare recently partnered with ChainPatrol to enhance Web3 security.

This collaboration aims to address common threats such as phishing, social engineering, and impersonation, protecting Flare’s users on Discord, Slack, and Telegram bots. The real-time threat monitoring provided by ChainPatrol adds a crucial layer of defense, supporting Flare’s commitment to user safety.

On the other hand, Flare’s native token, FLR, has faced recent market downtrends. At the time of writing, FLR is trading at around $0.02598, showing a decrease of 13.04% over the last 7 days and 3.25% over the last 24 hours.