The Flare Network, a blockchain platform designed to unlock smart contract capabilities for non-Turing-complete assets like Bitcoin (BTC), XRP, and Dogecoin (DOGE), is taking a major leap forward in decentralized finance (DeFi). With the announcement of a strategic partnership with Kinetic, a next-generation lending and borrowing protocol, Flare is poised to introduce robust DeFi functionalities directly into its ecosystem.
Backed by Rome Blockchain Labs (RBL), Kinetic aims to transform idle digital assets into yield-generating instruments through a secure, decentralized, and user-first lending platform. This collaboration marks a pivotal moment for Flare, as it deepens liquidity, expands financial accessibility, and bridges traditionally inert cryptocurrencies with advanced DeFi mechanisms.
Empowering DeFi with Lending and Borrowing
At its core, Kinetic offers a non-custodial, algorithmic lending platform where users can supply assets to earn yield or borrow against over-collateralized positions. By integrating with Flare’s infrastructure, Kinetic enables seamless participation in DeFi while preserving decentralization and security.
Users who deposit assets into Kinetic’s protocol will earn competitive yields through liquidity provisioning, incentivized by block rewards and protocol incentives. Borrowers, meanwhile, gain access to a growing pool of digital assets under an over-collateralized model—ensuring risk mitigation and long-term sustainability. Early adopters will also enjoy membership benefits such as interest rebates and exclusive access to private community channels.
👉 Discover how decentralized lending can transform your crypto strategy today.
Technical Backbone: Rome Blockchain Labs
The development and deployment of Kinetic are being led by Rome Blockchain Labs, a seasoned team with a proven track record in building custom financial markets across multiple blockchain ecosystems. Notably, RBL was instrumental in the creation of Benqi on Avalanche, one of the most successful lending protocols in the DeFi space.
This experience ensures that Kinetic is built on solid technical foundations, featuring scalable architecture, efficient risk modeling, and seamless user interaction. RBL is responsible for designing the protocol’s infrastructure, smart contract logic, and integration framework—laying the groundwork for a resilient and high-performance DeFi platform on Flare.
Leveraging Flare’s Decentralized Oracle: FTSO
One of the critical components enabling secure lending and borrowing is accurate, real-time price data. Kinetic will integrate Flare’s Time Series Oracle (FTSO), the network’s native decentralized oracle system, to source off-chain data such as cryptocurrency prices.
Unlike centralized oracles, FTSO pulls data from a diverse set of independent data providers, ensuring transparency, accuracy, and resistance to manipulation. This integration allows Kinetic to maintain reliable collateral valuations, adjust loan-to-value ratios dynamically, and trigger liquidations when necessary—all without relying on any single point of failure.
The use of FTSO strengthens the security and responsiveness of Kinetic’s platform, making it one of the most trustworthy lending protocols in the emerging Flare ecosystem.
Unlocking Value with FAssets
A groundbreaking aspect of this collaboration is Kinetic’s integration with FAssets, a technology developed by Flare Labs that wraps non-smart contract tokens—like BTC, XRP, and DOGE—into fully functional smart contract assets on the Flare Network.
Traditionally, these major cryptocurrencies cannot participate in DeFi due to their lack of programmability. FAssets solve this limitation by securely representing them on Flare with 1:1 backing, enabling them to be used in lending, borrowing, staking, and other DeFi activities.
With Kinetic supporting FAssets, users will be able to deposit wrapped BTC (fBTC), wrapped XRP (fXRP), and wrapped DOGE (fDOGE) to earn yield or use them as collateral. This dramatically expands the range of available assets and injects significant liquidity into the ecosystem.
👉 See how wrapped assets are revolutionizing DeFi opportunities across blockchains.
Testnet Launch on Coston2
Before going live on the mainnet, Kinetic will launch on Coston2, Flare’s fully-featured testnet. This phase is crucial for stress-testing the protocol, gathering user feedback, and refining the user experience in a risk-free environment.
Developers, testers, and early adopters are encouraged to interact with the platform, simulate lending and borrowing scenarios, and help identify potential improvements. The Coston2 launch serves as a community-driven incubation period, ensuring that the mainnet deployment is robust, secure, and user-friendly.
Visionary Leadership and Sustainable Tokenomics
Jake Hunsbusher, Core Contributor at Kinetic, emphasized the platform’s commitment to sustainable growth:
"Traditionally, the market value of tokens used as rewards for protocol engagement faces downward pressure due to distribution and trading. The Kinetic platform counters this by enabling users to work for their tokens and, in turn, put those tokens to work for themselves. Through innovative tokenomics, we prioritize broadening user access to the protocol and facilitating yield generation, all while preserving the protocol's long-term sustainability."
This approach breaks the cycle of token devaluation often seen in early-stage DeFi projects. Instead of passive airdrops or inflationary emissions, Kinetic incentivizes active participation—rewarding users who contribute liquidity, borrow responsibly, or engage with governance.
Security-First Approach
Kinetic places security at the forefront of its development. In addition to RBL’s architectural expertise, the protocol is undergoing rigorous audits by industry leaders:
- Watchpug is conducting smart contract audits to identify vulnerabilities.
- Immunefi is managing a bug bounty program to incentivize ethical hackers to report security flaws.
These measures ensure that user funds remain protected while fostering trust in the protocol’s long-term viability.
Frequently Asked Questions (FAQ)
Q: What is Kinetic?
A: Kinetic is a decentralized lending and borrowing platform built on the Flare Network, allowing users to earn yield on deposited assets or borrow against over-collateralized positions.
Q: Which assets will be supported at launch?
A: Initially, Kinetic will support FAssets such as fBTC, fXRP, and fDOGE—wrapped versions of Bitcoin, XRP, and Dogecoin—enabling these non-smart contract tokens to participate in DeFi.
Q: How does Kinetic ensure accurate price data?
A: The platform uses Flare’s decentralized oracle (FTSO) to fetch real-time cryptocurrency prices from multiple independent sources, ensuring reliability and resistance to manipulation.
Q: Is there a testnet available?
A: Yes, Kinetic will first launch on Coston2, Flare’s testnet, allowing users to explore features and provide feedback before mainnet release.
Q: Who is developing Kinetic?
A: Kinetic is developed in collaboration with Rome Blockchain Labs (RBL), known for building Benqi on Avalanche. The project emphasizes decentralization, security, and sustainable tokenomics.
Q: Can users from all countries access Kinetic?
A: Yes—Kinetic is designed to be non-custodial and KYC-free, making it accessible even in regions with uncertain regulatory environments.
👉 Start exploring decentralized finance platforms that prioritize security and innovation.
Final Thoughts
The integration of Kinetic into the Flare ecosystem represents more than just a new DeFi protocol—it’s a transformative step toward financial inclusion for millions of holders of non-smart contract assets. By enabling BTC, XRP, and DOGE to earn yield and serve as collateral, Flare and Kinetic are dismantling longstanding barriers in the crypto economy.
With strong technical backing, decentralized oracles, secure audits, and a user-centric design philosophy, Kinetic is well-positioned to become a cornerstone of DeFi on Flare. As the Coston2 testnet phase begins, the community has a unique opportunity to shape the future of decentralized lending.
This is not just another lending platform—it’s a new financial paradigm built on openness, innovation, and empowerment.
Core Keywords:
Kinetic, Flare Network, lending and borrowing, FAssets, decentralized oracle, DeFi platform, FTSO