Flare Finance, a decentralized financial ecosystem built on the flare network, has tied up with blockchain lending protocol Ola Finance. Smart contract-powered lending has been a key element of this partnership.
Ola revealed plans to launch a lending network on Songbird platform with future plans to deploy on Flare mainnet. This collaboration not only signifies Flare’s growing suite of DeFi offerings, but also allows projects building on top of Songbird to deploy a lending network through Ola’s protocol. As such, Flare’s canary network will act as a playground for the developers empowering them to offer lending/borrowing services to their users.
Songbird is a “canary network” of Flare similar to Polkadot’s Kusama network. Basically, the platform is designed to be a technical framework for Flare experiments with a limited supply of testnet tokens.
Ola Finance provides the ability is to create a Compound/Aave-like isolated instances of lending networks. Its alliance with Flare enables developers to test their systems on the Songbird before launching on the main network, thereby avoiding bugs and other system errors.
Additionally, Ola’s lending networks will be primed to support whichever tokens launched on Flare including all F-Asset tokens like XRP, DOGE, ALGO & LTC, thus providing DeFi services to non-Turing complete tokens.
The core way in which these protocols work is by enabling users who provide collateral in one crypto asset to borrow another crypto asset from users who lend to the network.
To accommodate less liquid tokens, Ola Finance runs an off-chain service called the “protector bot” whose purpose is to detect price anomalies and trade against them.
“We at Ola are thrilled to partner with a rising Layer 1 as promising as Flare. Their F-Asset system that aims to incorporate non-Turing complete assets into DeFi aligns with Ola’s goal to increase the number of tokens that offer DeFi Lending services to their communities. We are excited to align these goals to build out a strong relationship with Flare Network while growing their DeFi ecosystem,” said David Yakira, Co-Founder & CEO, Ola Finance.
Hugo Philion, Co-Founder & CEO of Flare added, “With TVL on Songbird reaching $120m in January, we are delighted that Ola’s lending-as-as-service solution is primed to attract even more liquidity into the Flare ecosystem. Their differentiator within DeFi lending which enables anyone to create their own branded lending network on Songbird & Flare should prove to be very powerful.”