The FAsset test on Songbird, Flare’s canary network, has been the center of attention lately due to its specific design and inherent limitations. Hugo Philion, the co-founder of Flare, recently elucidated the current status of this testing phase, offering insight into the rationale behind its constraints.
Philion underscored that the FAsset test has been intentionally designed to be limited. The issuance of FAsset is restricted by both a $2 million per asset cap and the amount of agent and pool collateral available. This limitation is not incidental but rather strategically planned to ensure the smooth and secure functioning of the system during the testing phase.
The question raised by the community was: why don’t agents provide more collateral to maximize minting up to the cap? Philion addressed this query by highlighting the calculated risk coverage during the testing phase. Flare Labs covers up to $300,000 of potential risks arising from code-related exploits. While agents are theoretically allowed to put forth more collateral, the risk of incurring losses beyond the covered limit of $300,000 makes them cautious to do so.
This cap will remain in place until the testing concludes and FAssets fully transition to Flare’s main network. Philion noted that expanding the test system’s scale beyond this point wouldn’t provide any additional benefits.
This cautious approach highlights Flare’s commitment to ensuring system security and stability before moving to full-scale operations. It also shows the measured steps Flare is taking to instill confidence within its ecosystem. As recently reported by Crypto News Flash, Flare has partnered with ChainPatrol to enhance its Web3 security.
This collaboration aims to mitigate common risks such as phishing, social engineering, and impersonation. It provides an added layer of protection for Flare’s users on platforms like Discord, Slack, and Telegram bots through real-time threat monitoring. This move reinforces Flare’s commitment to user safety.
Flare’s native token, FLR, has been experiencing fluctuations in the market recently. At the time of writing, FLR is trading at approximately $0.02598, marking a 13.04% decrease over the past week and a 3.25% decline over the last 24 hours. These recent movements underscore the volatile nature of the crypto market and the need for investors to stay informed and cautious.
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