FLR Finance (previously known as Flare Finance) is a DeFi (decentralized finance) platform on the Flare Network bringing utility to the XRP and FLR holders, combining the best of XRP (fast settlement), Ethereum (smart contracts), and Avalanche (consensus).^[4]

In October 2020, FLR Finance launched on the Coston Test Network.^{[undefined][4][5]}

FLR Finance is not an official part of the Flare Network and is not affiliated with Ripple, XRPLabs, or any affiliated party associated with XRP or Ripple in any way, shape, or form. The team never received any funding or grants from incubators, accelerators, angels, venture firms, banks, other competing blockchain networks, or any other form of investing entity. They are an independent team of globally based developers building to bring an innovative change to the XRP and Flare ecosystems. Currently, the team remains anonymous.^{[undefined][4]}

In October 2020, FLR Finance launched on the Coston Test Network.

In order to make testing easier for developers interested in building on the Coston Test Network, the FLR Finance team released a block explorer FlareScan for use by the community and also built a RestAPI for any interested developers.^{[undefined][4]}

FLR Finance is launching 6 DeFi (decentralized finance) products that will serve as an all in one trust-free solution to traditional banking and investing:

FLRX enables users of the Flare Network to swap currencies and earn passive income providing liquidity to liquidity pools providing traders with Decentralized On-Demand Liquidity (DODL).

In later releases, it will feature a completely decentralized spot and margin exchange allowing any and all pairings to trade and utilize leverage in a trust-free environment.

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Any tokens deployed on Flare Network can be listed and traded on FLRX.

Listings and whitelistings are subject to community governance voting which takes place over a 3 day period and requires a minority vote of the ecosystem.^[4]

The main pairings traded against on FLRX are: FLR , FXRP , YFLR and FUSD .

FLRX charges a maker fee (liquidity provider) of 0.075% and a taker fee (swap initiator) of 0.075% and both parties earn YFLR at a preset distribution rate.

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Governance over the FLRX Platform is performed by YFIN and YFLR Holders.

Holders vote on new listings, project white listings and any proposed changes that are to be made to the platform.^[4]

FLRFarm gives users the ability to earn a non-custodial yield on select Flare based assets.

Initially, holders of YieldFlare (YFLR), Spark (FLR), Trustless XRP (FXRP), and FLRUSD (FUSD) can participate in yield farming YieldFin (YFIN), the main governance token of the ecosystem.

YFIN’s whole supply will be mined through ecosystem participation alone with no pre-mine or team allocation.

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Holders can provide liquidity for pairs of FLRX to mint Liquidity Pool (LP) tokens and stake LP tokens to earn YFIN.

After the initial mining period ends, Capacitors will be released.

Enabling holders to take part in second tier yield farming with more diversified means of profit farming.^[4]

FLRUSD enables the users of the Flare Network to have an immediately available stablecoin currency.

FLRUSD (FUSD) is Tether (USDT), USD Coin, or DAI on the Flare Network. It can be minted and burned at any time by initiating an Asset Swap on FLRX. It is done so by staking or withdrawing USDT, USDC, or DAI to/from an Ethereum Smart Contract, which then allows the FLRUSD Contract to mint or burn an equal amount of currency on the Flare Network. ^[4]

FLRUSD maintains its variable dollar to dollar peg at all times, since it is asset-backed one for one by Ethereum-based stable currencies.

FLRUSD can be used like any other stablecoin and will always maintain its USDT, USDC, or DAI asset-backing.

Holders of FLRUSD can use their FUSD to issue bonds, certificates of deposit, and other financial products, rewarding varying APR’s based on ecosystem health and status.^[4]

FLRLoans is an asset-backed loan issuance platform that provides Decentralized On-Demand Liquidity (DODL) by enabling holders to pool their assets to be loaned against a borrower's collateral.

The ecosystem consists of “Creditors” and “Debtors” who make up the decentralized lending network.

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Creditors offer a variety of lending products to debtors who in turn pay interest on their desired loan products to the creditors.

Lending or Borrowing earns the obligated parties both the allocated APR (minus a 1.5% fee) and a correlating amount of YFIN.

Defaulting on a loan payment begins what is called a “collateral issuance” that replaces the missed loan payment, with the amount owed to the creditor from the debtors collateral pool.

Debtors do not lose all of their collateral pool, and instead, can continue payments as regular at any time to save their remaining collateral pool.

All loans are fully asset-backed 120% and allow the ecosystem to run trust-free on contracts built on the Flare Network.^[4]

FLRMutual is a decentralized mutual fund that allows people to share risk together without the need for an insurance company.

It covers new developing projects on the Flare Network and allows them to insure their risk against events like smart contract failure, hacks, and bugs that may affect a new ecosystem providing peace of mind to their users.

Holders of FLR, FXRP, YFLR, YFIN and FUSD are able to participate in mutual funds and can collectively back projects applying for insurance in either the pre or post-launch phase.

Staking one’s currency against the security of a project's smart contract provides “cover” to this project in the event of an issue.

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Claims can be submitted by users of the project in the event of an issue and can either be approved or denied by the members providing cover to the smart contract.

Members of the mutual earn shares of the fee pool that is accumulated from the project requesting insurance as well as an additional distribution of YFIN.

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Each project creates a different mutual pool, and all of the smaller pools together form the mutual fund.

While each pool provides oversight of the designated project, the mutual fund provides oversight over all pools.^[4]

FLRMine is a decentralized yield mining platform that allows owners of Bitcoin or Ethereum mining rigs to mine Spark (FLR).

Miners contribute their hash rate to a centralized mining pool that actively mines Bitcoin and Ethereum at the best rate possible.

The mining pool contributes these funds to an automated trading bot which swaps for Spark at the best rate possible.

This Spark is distributed back to the miners at a rate determined by their contribution to the pool’s total hash rate, along with an additional distribution of YMIN.

This action results in price support, upward price pressure, and a minable Spark Token for the Flare ecosystem.^[4]

The FLR Finance ecosystem utilizes a 3 token ecosystem to provide governance, fee replacement and rewards.

In addition to the ecosystem tokens, Spark (FLR) and Trustless XRP (FXRP) will be utilized within all products of Flare Finance.^[5]

YieldFlare Token (YFLR) is the ecosystem’s main platform token.

It will be utilized across all products and has a main focus on utilization within FLRX and FLRFarm.

Its initial use cases will include serving as a fee replacement token on FlareX, the primary staking token to farm YFIN, and a secondary governance token to the ecosystem used to vote on proposals and new token listings.

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The total supply of YieldFlare is 110,000,000 YFLR with the following distributions:

YieldFin Token (YFIN) is the ecosystem’s main governance token.

It will be utilized across all 6 products within the ecosystem with a primary focus on governance and reward structure.

Its initial use case will be to serve as the main reward token on the FLRFarm platform provided as a result of staking in one of the available distribution pools.

It will also serve as a distribution token for FLRLoans and FLRMutual upon platform release.

Once acquired, it can either be staked to earn more YFLR (released over a vesting period) or utilized to vote on governance proposals submitted by the team and other community members.

The total supply of YieldFin is 11,000 YFIN with the following distributions:

YieldMine Token (YMIN) is the ecosystem’s main rewards token.

It will be utilized primarily on the FLRMine and FLRX platforms.

Its initial use case will be to serve as a rewards token for providing mining power to the FLRMine Pool, as well as a mining rate multiplier on the FlareX platform.

Once acquired, it can either be burned to increase the rate at which one mines YFLR for staking YFIN, or sold on the market to traders interested in lowering their trading fees.

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The total supply of YMIN is indefinite and will be distributed at a rate of 100,000 YMIN per day and will adapt to the amount of miners who join the network, the weight gap between miners in hash power contributions, and the proposals submitted by the community.^[4]

Distribution of all tokens within the ecosystem is handled autonomously via smart contracts including the initial DAO Offering of the YieldFlare Token.

Upon completion of the DAO Offering, farming and mining will begin, allowing holders of YFLR, FLR, FXRP, and FUSD to begin harvesting YFIN and YMIN from the platform.^[4]

Distribution of the initial 40,000,000 YieldFlare will take place via an Initial DAO Offering.

All holders of FLR (excluding the official Flare Foundation Addresses) will be airdropped a proportioned amount of the 40,000,000 DFLR (DAO FLR), which will then allow them to swap this for YFLR on the platform.

Users will only have 7 days to conduct the swap, on the 7th day, all unclaimed YFLR will be burned or moved to the reserve pool.^[4]

10,000,000 tokens are reserved for the team with 9,000,000 placed in a 12-month vesting contract and 1,000,000 tokens made available for use by the team for marketing, development, and organizational costs.^[4]

Distribution of the 8,000 available YieldFin tokens allocated to the FLRFarm is conducted over a period of one year from the moment that mining begins.^[4]

Distribution of the 1,000 available YieldFin tokens allocated to the FLRLoans Pool is conducted over a period of one year from the moment that collateralization begins.^[4]

Distribution of the 1,000 available YieldFin tokens allocated to the FLRMutual Pool is conducted over a period of one year from the moment that collateralization begins.

The reserved 1,000 YieldFin tokens will be automatically unlocked and added to the mining pool upon completion of the initial mining period.

At any time before the end of the initial mining period, and after at least 25% of the supply is mined, the community can begin to utilize the governance platform to vote on how to use the reserve pools.^[4]

Distribution of the YieldMine token (YMIN) is ongoing until all YFLR is mined and circulating.

The supply is indefinite and will continue to grow until all YFLR is mined at a rate of 100,000 YMIN per day.

Mining will only last for 1 year in the ecosystem, after which, the supply will reduce based on deflationary mechanisms.

By the end of mining, the max supply of YMIN should be approximately 75,000,000 tokens.

The supply will decrease as holders burn their YMIN to increase their mining rate to mine YFLR.^[4]

Voting within the ecosystem is a privilege awarded to holders of YFIN or YFLR.

In the FLR Finance ecosystem, YFLR carries a 1x vote weight and YFIN carries a 10,000x vote weight on platform-based governance proposals.

While both offer a chance to vote on governance proposals (fee schedules, mining rates, reserve pools, etc.), YFLR is the only governance token that carries the option to vote on new listings and white listings on FLRX, as well as the ability to vote on how the 10,000,000 reserved YFLR is utilized in the future.^[4]

Proposals within the ecosystem are an option available to all holders of YFIN or YFLR.

Proposals cost a fee of 250 YFLR or 0.0025 YFIN to create.

The associated fee is sent back to the reserve pool for future utilization.

Once a proposal is submitted, it can not be taken back.

It can only be voted to be approved or denied.

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Different types of proposals carry different types of quorum requirements.

These quorum requirements vary from 10% quorum up to 70% quorum (100% quorum is when the total token supply circulating has voted) .^[4]