Key highlights:
- BlazeSwap will be the first decentralized exchange on the Flare blockchain platform
- The BlazeSwap will be leveraging the unique properties of the Flare blockchain to offer additional earning opportunities for liquidity providers
- LPs will be able to earn rewards from delegations to data providers of Flare’s FTSO system
Flare-based DEX project BlazeSwap aims to provide additional rewards to LPs
Flare, a blockchain platform focused on interoperability, is set to receive its first decentralized exchange. BlazeSwap will be tapping into the unique properties of the Flare platform to provide a unique set of features for DeFi users.
Users providing liquidity to BlazeSwap will not only be receiving the standard liquidity provider rewards, but will also be able to earn funds sourced from Flare’s price oracle delegation and airdrops.
Flare Time Series Oracle (FTSO) is a system that sources price data from centralized and decentralized cryptocurrency exchanges and submits it to the Flare blockchain. This allows the Flare blockchain to act as a hub for trading digital assets from a variety of blockchains, even those that don’t have native smart contract functionality.
The data providers that participate in the FTSO system are incentivized with rewards, so long as they provide quality data. Users that don’t participate as data providers have the option of delegating their FLR tokens to a data provider and get a portion of the rewards they earn.
BlazeSwap is using delegation as a way to enhance the earnings of liquidity providers. This makes the BlazeSwap DEX a more attractive destination for HLR holders, while contributing to the security and decentralization of the Flare blockchain at the same time.
BlazeSwap utilizes an automated market maker (AMM) model similar, and has ambitions of becoming a one-stop shop for trading the most important digital assets from a variety of different blockchains. The platform has been audited by Omniscia, a company that counts notable projects like Polygon and DappRadar among its clients.
The BlazeSwap DEX will be launching on Flare once the platform is out of its current “observation mode”. Pending approval from the Flare community, users providing liquidity to BlazeSwap will be able to receive rewards from the delegation incentive pool on top of the standard rewards from delegating their tokens to FTSO data providers. This proposal is called Flare Improvement Proposal 01.
Flare co-founder Hugo Philion commented on BlazeSwap, highlighting the project utilizing Flare’s native infrastructure to innovate in the decentralized finance space:
“We are thrilled to see BlazeSwap integrating Flare’s native data infrastructure to offer a new way of doing DeFi. This is exciting news, not only for BlazeSwap and Flare, but also the broader Web3 and DeFi communities. We look forward to seeing what other innovative products our growing developer base will be able to build using Flare’s native protocols.”
Meanwhile, BlazeSwap founder Alex Dupre said that the project will be announcing a bug bounty program to improve the security of the platform, and said that the project will be first rolling out the final version of its smart contracts on the Songbird blockchain, with a deployment on Flare coming afterwards. Dupre also touched on the reasons why BlazeSwap chose to build on Flare:
“The speed of the Flare network, its low gas fees and its goal to “connect everything” make it a perfect match with our decentralized exchange.”
