The newly launched blockchain Flare Network announced in a press release on August 25, 2022, about the upcoming collaboration with DeFi Protocol Pawnfi. It will enable usage of Non-Standard Assets on Flare blockchain.
The project aims to strengthen Flare’s DeFi presence. Users can fund the Pawn protocol or engage in advanced trades with Non-Standard Assets.
Pawnfi will implement advanced fair appraisal systems for the assets supplied, which can also be leveraged by other Flare network participants to get reliable pricing of Non-Standard Assets.
Also, along with enhancing the current Flare NFT ecosystem, Pawnfi will provide a significant part of its more than 280k active users to the Flare network.
Cross-chain interoperability between different Layer-2 systems and Metaverses will be strengthened from the partnership. Thanks to Flare’s decentralized and fully-insured LayerCake bridges, Pawnfi will be able to onboard more Layer-1 DeFi chains, GameFi products, and NFT ecosystems.
“We are glad to see Pawnfi joining the Flare ecosystem to make use of our powerful interoperability solutions,” said Hugo Philion, CEO and co-founder of Flare Network. “By joining the Flare community, Pawnfi can tap into virtually all major blockchains and assets, dramatically boosting their reach. Meanwhile, Flare users gain access to Pawnfi’s innovative solutions for unlocking usage of less liquid assets.”
Partnership to Fuel Innovation
Pawnfi is a DeFi product that introduces a lending and leasing market to provide fair appraisal, liquidity, and use case for Non-Standard Assets. Pawnfi enables the divestiture of asset ownership, use rights, and earning rights of Non- standard Assets. Holders of NFT, GameFi, liquidity pool tokens (and more) can draw loans against or lease their assets to gain instant usage from their illiquid tokens.
“Pawnfi will become a one-stop destination as it can now provide a bridge into other metaverses. Users can achieve seamless cross-chain operations with their assets and leverage on Pawnfi’s lend/rent/sell as well as advanced liquidity modules to utilize their assets to retain financial benefits,” said Wesley Kayne, Pawnfi’s CEO and Founder.
The Pawnfi liquidity model is precious for NFT collectors, who will likely have large amounts of capital locked in assets they are unwilling to part with. With Pawnfi, Flare NFT holders can put them to use by either drawing collateralized loans against them or lending them for yield.
Flare is a new blockchain with the first consensus protocol for external data. Decentralized applications on Flare can safely acquire and use information from other blockchains, opening the door to the extended utility.
Flare provides decentralized and insured multilateral bridging, full cross-chain composability with assets and information able to flow freely between all chains, decentralized integration of real-world data in Web3 dApps, and a secure, fully-interoperable multichain solution.